AUSTRALIA oil and gas exploration firm, Invictus Energy is in the market to raise US$10 million by way of a private Placement to sophisticated and institutional investors as it seek to follow up on its successful Mukuyu-1 exploration campaign.
Invictus is on a mission to explore for oil and gas in the Muzarabani area and recently concluded drilling operations at Mukuyu-ST1, which it described as a tremendous success.
In a shareholder update, the firm said it has received firm commitments that were well supported from sophisticated and institutional investors to raise $10.0m (before costs) by way of private Placement.
The Placement has been strongly supported by new and existing institutional and sophisticated shareholders, and was strategically cornered by existing investor Mangwana Capital, local Zimbabwean partners and the Board of Directors who in aggregate contributed $1.3m which will be issued subject to shareholder approval at a shareholder meeting.
Managing Director, Mr Scott Macmillan said he is pleased with the backing Invictus has received from both existing and new shareholders as we prepare to follow up the successful Mukuyu-1 exploration campaign.
“The Placement was oversubscribed and cornered by long-term investor Mangwana Capital, as well as a number of local Zimbabwe partners and the Board.
“Preparations of our Phase 2 exploration and appraisal campaign at the Cabora Bassa Project are well advanced, with the 2D seismic campaign anticipated to kick off in May,” he noted.
“This seismic campaign will help mature multiple identified leads in the proven fairway into drill ready prospects, both along trend from Mukuyu and in the highly prospective Basin Margin play.
“We also remain on track to spud the Mukuyu-2 appraisal well in the third quarter of 2023, targeting multiple hydrocarbon (gas-condensate and potentially light oil) bearing intervals encountered in the Mukuyu-1/ST1 well in the Upper Angwa, Pebbly Arkose and Post Dande formations.”
Under the Placement, Invictus will issue 83,333,333 new fully paid ordinary shares at an issue price of $0.12 per new share, representing a 20 per cent discount to the last traded price of IVZ shares on 3 April 2023.
The firm noted that furthermore, the attaching options issued via the transaction are expected to provide meaningful additional capital to the Company’s balance sheet, at a materially higher valuation than the Placement, should the Company continue to achieve exploration success during its appraisal drilling program.
Initial exploration work has been promising, and points to a significant resource, setting Zimbabwe on course to becoming an oil and gas-producing nation.
In 2020, the Government classified the Muzarabani project as one of the priority development projects, which can provide a significant economic benefit to the economy in pursuit of an upper middle-income economy by 2030. – The Chronicle
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