Invictus has raised $12m to fund drilling of the Mukuyu-1 well. Pic: via Getty Images
Energy
New and existing institutional investors have strongly backed Invictus’ $12m private placement to fund drilling of its upcoming Mukuyu-1 gas-condensate exploration well in Zimbabwe.
The well, which is expected to spud in July, will test multiple stacked targets within the greater Mukuyu structure which could host 8.2 trillion cubic of gas and 247 million barrels of condensate.
Invictus Energy (ASX:IVZ) noted that demand exceeded the available number of shares priced at 20c under the offer.
The placement includes one free option for every two shares subscribed, with a strike price of 35c on a one-year term.
“We are pleased to welcome new institutional investors onto our share register at an exciting time for the Company as we prepare to embark on our maiden drilling campaign in Zimbabwe,” managing director Scott Macmillan says.
“Through the completion of this capital raise, in conjunction with our existing cash balance and additional funds delivered via the exercise of in-the-money options, the company is well funded for the Mukuyu-1 well.
“We also continue to progress bids received from multiple potential farm-in partners and will provide a further update on the farm-in process in due course.
“We have a number of catalysts in the lead up to the basin opening drilling campaign including an update to the prospect and lead inventory encompassing the expanded SG 4571 licence area, selection of the 2nd well location to follow on from Mukuyu-1, and the mobilisation of the Exalo 202 drilling rig.”
The raising follows the company’s seismic studies indicating strong potential for stacked pay intervals at the shallow target level in the new Post Dande (Horizon 200).
It also includes the presence of an extensive flat spot – a potential indicator of hydrocarbons – across the southern flank of the structure in the 500 Horizon Target (Upper Angwa) and anomalous, low interval velocity zones in the Upper Angwa that are indicative of gas fill.
This led the company to modify the Mukuyu-1 drill program to include a diverter system for the shallow sections.
This article was developed in collaboration with Invictus Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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