Invictus Energy manages to raise required capital

AUSTRALIA-LISTED oil and gas exploration firm, Invictus Energy, has completed raising
a total of $8 million (AS) required to fund a range of initiatives for the Cabora Bassa
project in Mashonaland Central Province.

Recently, the company — a parent firm of Geo-Associates that holds the Muzarabani
special grant, registered significant milestones in attempting to establish commercial
viability of oil and gas reserves in Zimbabwe’s Cabora Bassa Basin.

The basin is a geological formation underlying the Muzarabani area.
Invictus Energy said the $8 million funding, which was raised through a combination of a placement and Securities Purchase Plan (SPP) would be used to advance initiatives that include payment of the rig mobilisation fee, acquisition of long lead items for the planned two well drilling programme.

The funds will also be used to provide general working capital and implementing
finalisation of Cabora Bassa 2021 (CB21) Seismic Survey data processing.

“A total of $8 million was raised comprising of $4 million via a placement and $4 million
via an SPP.

“Proceeds from the SPP and placement will be used to fund a range of initiatives to
develop Invictus’ flagship Cabora Bassa project.

“These include payment of the rig mobilisation fee, purchase of long lead items for the
planned two-well drilling programme, finalisation of CB21 Seismic Survey data
processing, and general working capital,” it said.

Last November, Invictus announced the completion of the CB21 Seismic Survey.
Seismic survey in oil and gas exploration refers to the process of using high-tech
equipment to listen to underground sound vibrations to determine the existence of
hydro-carbons.

The seismic survey for the Muzarabani project was undertaken to identify the best spots
to drill exploration wells.

Invictus said due to overwhelming demand and to accommodate as many eligible
shareholders as possible, the SPP was doubled from $2 million to $4 million.

Mangwana Opportunities Fund, which is investor-owned, closed end investment firm
managed by Mangwana Capital, has agreed to increase its investment in Invictus by way
of a placement for $500 000.

The placement to Mangwana is strategic for Invictus as it increases Zimbabwean ownership in the company.

The fund comprises a broad range of Zimbabwe’s institutional investors including Stateowned and major pension funds and invests primarily in the fields of agriculture, natural resources and tourism.

“The Fund has prescribed asset status and has been granted tax exempt status by the Zimbabwean Ministry of Finance. The placement securities to Mangwana have been issued under the company’s placement capacity pursuant to Australia Stock Exchange (ASX) Listing Rule 7.1 with shares placed on the same terms outlined in the announcement to the ASX on 29 December 2021.

“The shares are to be issued at $0,10 per share and inclusive of a one-for-two free
attaching option, $0,14 exercise price, expiring 31 January 2025.

“A total of five million shares and 2,5 million options are to be issued to Mangwana. The
Mangwana shares issued under the placement will be escrowed for a period of three
months from date of issue.”

Invictus managing director Mr Scott Macmillan said his organisation was in a strong position ahead of its planned drilling campaign on the back of support from retail investors and recent SPP participants, which allowed Invictus to double its targeted raise ahead of launching key pre-drilling initiatives in the upcoming weeks.

“Mangwana’s increased stake in Invictus adds significant local ownership weight to the company and aligns well with the company’s commitment to in-country investor, community and Government stakeholders, among others.

“Freshly processed data from the CB21 Seismic Survey evidenced a target-rich hydrocarbon environment and identified multiple anomalies of interest,” he said.

Mr Macmillan said his firm would now turn its attention to preparation for drilling at our Cabora Bassa project, the world class Muzarabani prospect, with further updates regarding pre-drilling activity to be released in the near future.

In the 1990s a French-based firm, Mobil, carried out initial seismic surveys before
abandoning the project. — The Chronicle