INVICTUS Energy has launched an entitlement issue for ordinary shares to all eligible shareholders following a private placement that raised over AUS$15 million (equivalent to US$10,2 million) to fund continued exploration and development activities in Zimbabwe.
At the end of December last year, the Australia-listed firm that is scouting for oil and gas at the Cabora Bassa basin in Muzarabani and Mbire districts in Mashonaland Central Province, announced that it had raised Australia $15 million (US$10,2 million) through private placement to fund ongoing operations at its prospective area — the Cabora Bassa Basin.
In an update released this week, Invictus said: “The company is pleased to provide details of an Entitlement Issue for ordinary shares and IVZOA-listed options for all eligible shareholders on Tuesday January 30, 2024.
“The offer follows a strongly supported private placement that raised more than AU$15 million of capital to fund continued exploration and development activities at the Cabora Bassa project in Zimbabwe.”
Invictus managing director, Mr Scott Macmillan, was quoted expressing gratitude towards his organisation’s release of details of its pro-rata non-renounceable entitlement offer following the recent private placement for sophisticated and institutional investors in December last year.
“Interest in the placement surpassed our initial target of AU$10 million, extending the capital raise to more than AUS$15 million and the company committed to extend the same terms to all shareholders via this offer.
“Funds from the offer will be invested in important ongoing operational activity at our Cabora Bassa project including well testing at Mukuyu-2, where we declared two material gas discoveries in the Upper and Lower Angwa targets last month.”
Prior to Mukuyu-2 exploration well, drilling conducted at Mukuyu-1 prospect in 2022, though drilling was abandoned, also confirmed the presence of hydrocarbons but without the fluid sample.
Drilling on Mukuyu-1 where Invictus spent US$20 million, was abandoned after the company experienced serious technical glitches.
“These discoveries are transformational for the company, for the onshore oil and gas sector and Southern African communities that continue to live in the grip of energy shortages.
“Preparation for 3D seismic surveying over Mukuyu-2 will be carried out as well as ordering long lead items, planning and preparation for a new high impact exploration well within our commanding 360 000ha project area,” said Mr Macmillan.
The discovery of gas offers limitless economic opportunities for Zimbabwe including energy security, improved export earnings, and job creation, among others.
A total of 11 hydrocarbon samples were recovered to the surface from Mukuyu-2’s Lower Angwa, and additional Upper Angwa geological zones of the exploration well, expanding the initial net estimates of the available resource from 20 trillion cubic feet to 34,9 TCF.
Following exploration work so far carried out on both Mukuyu-1 and Mukuyu-2 exploration wells, GeoAssociates, the company which is the licence holder of the special grant 4571 on which the gas has been discovered, claims that about US$50 million has so far been channelled towards exploration.
Invictus holds 80 percent of GeoAssociates while the balance is owned by indigenous group, One Gas Resources.
The Cabora Bassa Basin is the biggest untested structure of its kind in Africa and Invictus is confident of a commercial discovery on the back of the results so far produced.
It is believed that a major initial industry after commercial discoveries of natural gas would be gas power stations, which can be built quickly and are more efficient than coal thermal plants and have only about half the carbon footprint.
The successful implementation of the project also provides a leeway for Invictus to convert the extracted gas into other forms of fuel such as diesel, kerosene, paraffin and waxes, among others.
