Mission accomplished: Invictus raises $3m with $1m oversubscriptions opened
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Invictus Energy’s share purchase plan (SPP) $2m target was topped on the first day of opening to eligible shareholders on December 24, 2021.
Since then, the board has exercised its right to accept oversubscriptions of a further $1m, increasing the SPP total from $2m to $3m.
Invictus (ASX:IVZ) will also invest the funds into drilling at the highly-anticipated Muzarabani-1 well within Zimbabwe’s wider Cabora Bassa Project where it holds an 80% interest.
The campaign will kick off with a planned minimum depth of 3,000m or basement to test the giant Mzarabani conventional gas-condensate stacked target that could host 8.2 trillion cubic feet of gas and 247 million barrels of condensate.
Location and details for the second well will be finalised once the seismic interpretation is completed.
Earlier this month IVZ secured casing, wellheads and other long-lead items ahead of the May 2022 drilling launch and said it would soon award the well services contract after completing an extensive tendering process.
“We are very pleased with the way the drilling program is coming together with Invictus securing the wellheads and casing long lead items for a high impact 2-well drilling program,” managing director Scott Macmillan said at the time.
Invictus remains on track for the upcoming drilling campaign to commence in May 2022, Macmillan said.
“We are planning for a successful drilling campaign, which if transpires will be a transformational event for both Invictus and Zimbabwe.”
The Cabora Bassa Basin has never been tested by drilling despite an extensive dataset acquired by Mobil in the early 1990s defining the Mzarabani target due to the lack of gas demand at that time.
However, demand for gas in southern Africa has been rising steadily and Cabora Bassa is certainly looking like the right address for exploration.
This has already drawn Cluff Energy Africa (CEA) as a potential farm-in partner who could take a 25% stake in the project in return for funding a third of the costs for the two-well campaign.
CEA’s potential entry also sets the baseline for Invictus to consider other farm-in options.
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.