Invictus Energy is set to start field operations at its Cabora Bassa gas project Pic: Getty Images
Energy
Special Report: Invictus is poised to kick off field operations at its Cabora Bassa gas project in Zimbabwe after securing all necessary approvals.
The company has also raised a further $220,000 through a placement of shares to Mangwana Opportunities Fund under a second tranche of the equity funding agreement it announced in April.
Invictus Energy’s (ASX:IVZ) reconnaissance program and baseline survey consist of the traversing of the proposed infill seismic lines for a planned acquisition campaign in the 2021 dry season.
This will capture details such as topography, existing access roads, drainage, vegetation cover, soil types, rock exposures, sampling of any natural oil and gas seeps, areas of development (constructions and cultivation), plus any sites of cultural, religious or historic importance.
“We are extremely pleased to commence our activity on the ground in the Cabora Bassa Project having now received all of the necessary approvals and restrictions in the country being eased,” managing director Scott Macmillan said.
“The company has a window of opportunity to carry out a reconnaissance program prior to the onset of the rainy season so that we can map out the routes for the planned seismic acquisition campaign next year.
“This exercise will enable us to map out the optimal route ahead of the survey which will reduce the acquisition time and maximise efficiency of the survey.”
The share placement to Mangwana – backed by noted Zimbabwean businessman Joe Mutizwa – is the second of up to four tranches of funding available that are calculated at market rates.
While the first tranche was placed at 3.5c per share, which represented a significant premium at that time, the second tranche was executed at 6.6c per share – a 9 per cent premium to the last closing price.
These shares will be held in escrow for six months from the date of completion.
The Cabora Bassa project has the potential to host multi-trillion cubic feet of gas that could alleviate the energy shortages that are hampering industry and economic growth in South Africa.
It hosts the Mzarabani prospect that was defined from a robust dataset acquired by Mobil in the early 1990s.
Invictus has already inked supply deals covering maximum supply of 730 billion cubic feet (Bcf) of gas, which represents just a small slice of the project’s potential.
This includes a non-binding MoU with Tatanga Energy to jointly investigate the economic and commercial viability of supplying gas to Tatanga’s proposed 500-megawatt (MW) plant.
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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