Austraslia’s Invictus Energy Raises A$12m for Mukuyu-1 well

Invictus's Scott McMillan
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Sydney-listed Invictus Energy has received commitments from investors to raise A$12mn ($8.5mn) by way of a private placement, it said on May 23. The funds will go towards the drilling of the Mukuyu-1 well in Zimbabwe, to be undertaken in July or August this year.

Under the placement, Invictus will issue new fully paid ordinary shares at an issue price of A$0.20/share, which represents a 27.3% discount from the company’s share price on May 18.

“The placement saw participation from multiple new and existing institutional investors ahead of the company’s upcoming drilling campaign at its 80% owned and operated Cabora Bassa project in Zimbabwe and was strongly supported with demand significantly exceeding shares available,” Invictus said.

The first well in the campaign will target the Mukuyu prospect, which has been independently estimated to contain 8.2 trillion ft3 of gas and 247mn barrels of condensate.

Meanwhile, Invictus said it is continuing to progress multiple bids from potential farm-in partners. As part of a final farm-in agreement, the company anticipates having a significant portion of the drilling programme funded by a farm-in partner.

The company earlier this year expanded the acreage of licence area SG 4571. Invictus’ 80% owned subsidiary Geo Associates and the Sovereign Wealth Fund of Zimbabwe (SWFZ) executed an initial agreement regarding the amalgamation of SG 4571 licence and with SWFZ’s MSC003 Cabora Bassa South Reserved Area to cover the entire Cabora Bassa basin.