Invictus Energy Offer Oversubscribed

Vaca Muerta, Argentina, December 23, 2016: Extraction of unconventional oil. Battery of pumping trucks for hydraulic fracturing (Fracking).
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HARARE — Invictus Energy, the company spearheading an ambitious oil and gas project in northern Zimbabwe, has announced that the second tranche of its US$10 million capital-raising initiative has been oversubscribed by institutional investors. The company has accepted just over US$2 million in oversubscriptions, reflecting strong confidence in the Cabora Bassa Project.

The funding is intended to support further exploration and wellsite development in the Mukuyu fields, located in Mbire, Mashonaland Central Province. Invictus Energy initially announced the discovery of condensate deposits in the Mukuyu area in December last year. While no timeline has been set for the commencement of production, the company is already pursuing agreements for the near-term supply of gas and plans to establish a gas-to-energy facility.

“Invictus Energy Limited is pleased to announce that following shareholder approval at the Extraordinary General Meeting held on October 21, 2024, the second tranche of the US$10 million institutional placement managed by Mangwana Capital (Private) Limited, as announced to the ASX on July 29, 2024, has been completed,” the company said in a statement. Mangwana Capital, an investment advisory firm, is a shareholder in Invictus Energy.

The first tranche of the placement, valued at US$5 million, was partially underwritten by Zimbabwe’s Mutapa Investment Fund and was finalised in August 2024. Invictus noted that the oversubscription demonstrates robust investor confidence in its operations. The company’s listing on the Victoria Falls Stock Exchange allows local investors to hold and trade securities in the firm, marking a significant milestone for Zimbabwe’s investment landscape.

“With the capital secured, we are equipped to accelerate the next phase of our exploration and development activities at the Cabora Bassa Project,” said managing director Scott MacMillan. “We remain committed to delivering long-term value for our shareholders and contributing to Zimbabwe’s energy independence and economic growth.”

In late 2023, Invictus Energy’s Mukuyu drilling campaign uncovered two gas deposits in the Lower and Upper Angwa formations, a discovery ranked as the second largest oil and gas find in sub-Saharan Africa that year by global analytics firm Wood Mackenzie. The Mukuyu discovery is estimated to hold 1.3 trillion cubic feet (Tcf) of gas, positioning Zimbabwe as a potential major gas producer in the region.

The economic implications of the discovery are significant. The development of the Mukuyu fields could bolster Zimbabwe’s energy security, create jobs, and accelerate economic growth. Furthermore, it offers a potential solution to the country’s chronic energy shortages, which currently force the state utility ZESA Holdings to impose lengthy power rationing schedules.

Invictus’ progress underscores the critical role of strategic investments in reshaping Zimbabwe’s energy landscape and advancing the country’s economic ambitions.