Australia Stock Exchange (ASX) listed and Zimbabwe-focused oil and gas exploration junior, Invictus Energy is seeking to raise fresh 15,2 million Australian dollars (US$10,06 million) capital to fund drilling activities at its Mukuyu 2 oil and gas drill and preparation for a new high-impact exploration well following completion of interpretation of recently acquired CB23 infill seismic survey.
The company, whose main asset is the expansive oil and gas exploration prospect in the Cabora Bassa region, which encompasses the Muzarabani prospect, has launched an entitlement offer for up to A$15,2 million at A$0,13 per share.
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Book NowThis follows the successful raising of A$15 million (US$10,25 million) last December through the issuance of approximately 115 384 616 new shares on the Australian Stock Exchange at a price of A$0,13 per share that was fully paid for.
In an update this week, the firm said the offer follows a strongly supported private placement that raised more than A$15 million of capital to fund continued exploration and development activities at the company’s 80 percent owned and operated Cabora Bassa Project in Zimbabwe.
The closing date for the offer is February 19.
Managing director, Mr Scott Macmillan said: “The company is pleased to release details of its pro-rata non-renounceable entitlement offer following the recent placement for sophisticated and institutional investors in December 2023.
“Interest in the placement surpassed our initial target of A$10 million, extending the capital raise to more than A$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.”
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Mr Macmillan said the 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.”
The firm said the new offer is being made as a pro-rata non-renounceable entitlement issue of one share for every 12 shares held by shareholders registered at the record date at an issue price of AU$0.13 per share together with one listed option for every two shares subscribed for and issued.
Based on the capital structure of the company approximately 117,204,164 shares and 58,602,082 IVZOA options may be issued under the offer to raise up to $15,236,541 (before costs).
Each option entitles the holder to subscribe for one share upon exercise of the option at an exercise price of A$0.20 with an expiry date of 7 June 2026.
No funds will be raised from the issue of the listed options.
In December last year, Invictus announced further gas discovery at its Mukuyu-2 exploration well in Muzarabani-Mbire districts, confirming the country’s potential as one of the world’s largest future producers of gas.
The announcement buttressed earlier proclamations made by Mines and Mining Development Minister Zhemu Soda together with GeoAssociates and Invictus that substantial moveable hydrocarbons in the Upper Angwa, geological zone of the Mukuyu-2 exploration well, had been discovered.
Before 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
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.
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