Invictus Energy has announced a private Placement to raise $10.0m, at $0.12 per share, following the Company\u2019s decision to advance preparations for an appraisal and exploration campaign in Zimbabwe\u2019s Cabora Bassa Basin.<\/p>\n\n\n\n
Comments from Managing Director Scott Macmillan: Private Placement Furthermore, the attaching options issued via the transaction are expected to provide meaningful additional capital to the Company\u2019s balance sheet, at a materially higher valuation than the Placement, should the Company continue to achieve exploration success during its appraisal drilling program. PAC Partners acted as the lead manager, with Evolution Capital acting as Co-Managers and Details of SPP Mukuyu-2 will target multiple hydrocarbon (gas-condensate and potentially light oil) bearing intervals encountered in the Mukuyu-1\/ST1 well in the Upper Angwa and Pebbly Arkose formations, as detailed in the ASX release on 23 January, with the aim of confirming a gascondensate discovery.
<\/strong>\u201cI am pleased with the backing Invictus has received from both existing and new shareholders as we prepare to follow up the successful Mukuyu-1 exploration campaign.
\u201cThe Placement was oversubscribed and cornered by long-term investor Mangwana Capital, as well as a number of local Zimbabwe partners and the Board.
\u201cPreparations of our Phase 2 exploration and appraisal campaign at the Cabora Bassa Project are well advanced, with the 2D seismic campaign anticipated to kick off in May.
\u201cThis seismic campaign will help mature multiple identified leads in the proven fairway into drill ready prospects, both along trend from Mukuyu and in the highly prospective Basin Margin play.
\u201cWe also remain on track to spud the Mukuyu-2 appraisal well in the third quarter of 2023, targeting multiple hydrocarbon (gas-condensate and potentially light oil) bearing intervals encountered in the Mukuyu-1\/ST1 well in the Upper Angwa, Pebbly Arkose and Post Dande formations.
\u201cAgain, I would like to thank existing shareholders that participated in the Placement for their continued support and would like to welcome new investors that are joining our journey.\u201d<\/em><\/p>\n\n\n\n
<\/strong>The Company has received firm commitments that was well supported from sophisticated and institutional investors to raise $10.0m (before costs) by way of private Placement. The Placement has been strongly supported by new and existing institutional and sophisticated shareholders, and was strategically cornered by existing investor Mangwana Capital, local Zimbabwean partners and the Board of Directors who in aggregate contributed $1.3m which will be issued subject to shareholder approval at a shareholder meeting.<\/p>\n\n\n\n
Use of funds
Proceeds from the Placement will be used to fund the preparations for the Mukuyu-2
appraisal well program and Phase 2 exploration program:<\/p>\n\n\n\n\n
book-runner to the Placement and will be paid a management fee of 2 per cent and a selling
fee of 4 per cent for the Placement funds received. PAC Partners and Evolution Capital will
receive lead manager listed options on a ratio of one-for-eight, and on the same terms as the
placement attaching options. <\/p>\n\n\n\n
<\/strong>Following completion of the Placement, the Company will offer existing eligible shareholders the opportunity to participate in a non-underwritten SPP, which will be undertaken on the same terms as the Placement.
Mukuyu-2 Overview & 2D Seismic
<\/strong>Preparations for the Mukuyu-2 appraisal program and Cabora Bassa Phase 2 exploration campaign are well advanced. The 2D seismic acquisition program is anticipated to commence in May, pending the award of seismic contract, and will cover the eastern portion of EPO 1848 & 1849, incorporating the
Company\u2019s experience from the successful CB21 Seismic Survey acquisition.
The new seismic campaign will be aimed at maturing multiple leads (Mopane, Musuma, Machabel and Mahogany) along the proven play on trend to the east of Mukuyu and additional leads along the highly prospective Basin Margin play (Mimosa and Mukwa).
The acquisition of modern 2D seismic will likely allow the Company to mature a number of these leads, previously identified on reprocessed vintage seismic data, to drillable prospects. Drilling of the first well in the Mukuyu appraisal program, Mukuyu-2, also remains in line with prior guidance, with an anticipated spud date early in the third quarter of 2023.<\/p>\n\n\n\n
The appraisal well will also aim to test the Post Dande horizon away from the major east-west fault on the southern flank and the deeper potential in the remaining Upper Angwa formation, which was not encountered in the Mukuyu-1\/ST1 campaign due to it being thicker than predrill estimates, providing further upside potential.
The Mukuyu-1\/ST1 well encountered gas pay to total depth, interpreted from wireline logs and fluorescence in multiple reservoirs throughout the 1,500-metre interval penetrated in the Pebbly Arkose and Upper Angwa<\/p>\n","protected":false},"excerpt":{"rendered":"