Strong support for $1.5m placement sets Invictus up to progress Zimbabwe gas project
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Special Report: Invictus is well-funded to progress its flagship Cabora Bassa gas-condensate project in Zimbabwe following a successful $1.5m placement.
Cabora Bassa is one of Africa’s largest seismically defined yet undrilled onshore structure and has the potential to be the continent’s next major hydrocarbon province.
Along with the company’s existing cash reserves, the new funds ensure that Invictus Energy (ASX:IVZ) is well funded through this growth phase as farm-out discussions develop and preparatory works for the on-ground exploration phase begin.
Invictus is also progressing its Corporate Social Responsibility program within the community resulting from the completed Environmental Impact Assessment field survey, and government discussions on the petroleum regulatory framework.
The funds were raised through the issue of almost 57.7 million shares priced at 2.6c each to new and existing sophisticated and institutional investors.
Ashanti Capital is acting as lead manager to the placement.
Discussions are also ongoing in relation to the farm-out of Cabora Bassa, with significant interest at last week’s Africa Oil Week presentation.
“The demand and bids for the placement was well in excess of our target and we thank our existing shareholders and the new incoming shareholders for their strong support,” managing director Scott Macmillan said.
“The company looks forward to an exciting growth phase as we focus on discussions with potential farm-in partners and the future exploration program.”
Cabora Bassa was first defined by Mobil during the 1990s, with the supermajor spending $30m acquiring 2D seismic, gravity and aeromagnetic data and has remained essentially untouched until it was picked up by Invictus.
The company subsequently reprocessed the Mobil data, which increased the size of the Mzarabani primary target while identifying and quantifying other high potential horizons above and below the Alternations Member.
The Mzarabani anticline feature is a massive stacked prospect that could hold 8 trillion cubic feet of gas and 250 million barrels of condensate in a single target.
The prospect has five stacked objectives that can be tested by a single well.
Additionally, the substantial demand for gas in southern Africa ensures that any discovery of gas would have no shortage of offtakers.
Invictus has already signed a memorandum of understanding to supply Sable Chemical Industries with 70 million cubic feet of gas per day for a 20-year period to replace imported ammonia for the production of fertiliser.
An oil discovery will also find buyers both in Zimbabwe and regional markets.