Invictus oil, gas plans receive funding boost
Invictus Energy, which is exploring for oil and gas in Muzarabani, plans to drill test wells in October received a major boost after it secured support from investors to raise US$10,48 million exploration funding.
The oil and gas exploration junior said the funds will be raised through a share issuing of additional shares to new and existing institutional and sophisticated investors.
Invictus has already spent more than US$3,5 million in processing secondary data collected in the early 1990s by global oil giant Mobil and the research findings support huge potential for oil and gas.
The funding will be applied towards seisimic acquisition campaign this year and ordering of long lead equipment for the test well drilling, which is scheduled for October.
Invictus has since undertaken detailed traversing and mapping across the prospective area, identifying the optimal acquisition routes.
“Invictus received strong interest and support from both new institutional investors and existing shareholders, PAC Partners acted as lead manager to the Placement,” Invictus said.
Under the placement Invictus will issue 25 058198 new fully paid ordinary shares under the company’s remaining ASX LR-7.1 capacity.
The company will issue 47 669 075 new shares under the company’s additional ASX LR-7.1A placement capacity, for a total of 72 727 273 new shares, at an issue price of $0,11 per share.
The placement price of A$0,11 per share represents a 21,4 percent discount to the last traded price of $0,14 per share on March 19, 2021, being the last trading date before the placement and a 10 percent discount to the 15-day VWAP prior to that date.
Each investor in the shares will be allocated an attaching unlisted option, on a 1-for-2 basis, with an exercise price of $0,17 and a 3-year term, resulting in a total of 36 363 636 new options being issued.
Proceeds of the placement will be applied towards the upcoming 2D seismic campaign in special grant 4571, basis of well
design, long lead drilling items for the Muzarabani-1 exploration well, drilling rig tender preparation and general working capital.
“We are extremely pleased with the excellent support received from new and existing shareholders and it is a strong endorsement of our Cahora Bassa project and the exciting and world class MUzarabani-1 Prospect, which the company is preparing to drill,” commented managing director Scott Macmillan.
The company has confirmed that a Petroleum Exploration Development and Production Agreement (PEDPA) review had been completed by the Inter-Ministerial Committee of the Government of Zimbabwe and has been already approved.
The PEDPA provides the framework for progression of the Cahora Bassa (Muzarabani) project through the exploration, appraisal, development and production phases and the obligations and rights of each party over the project life-cycle.
The company announced, three trading days before the end of 2020, that it had received a farm-in offer to Geo Associates’, the firm’s 80 percent shareholder, to the Cahora Bassa (Muzarabani) project .
Invictus Energy is an independent oil and gas exploration company focused on high impact energy resources in sub-Saharan Africa.
Its asset portfolio consists of a highly prospective 250 000 acres within the Cahora Bassa Basin in Mashonaland Central, Zimbabwe. Special Grant 4571 contains the world class multi-trillion cubic feet Muzarabani and Msasa conventional gas condensate prospects.-ebusinessweekly.co.zw
