Invictus Energy (ASX: IVZ) raises $1.49M, advances Mukuyu gas field appraisal

Highlights

• IVZ has raised AU$1.5 million on completion of a Shareholder Entitlement Offer.
• The company has engaged Mangwana Capital to lead strategic investment process for Zimbabwean institutional investors.
• Invictus is advancing Mukuyu appraisal program as well as post well studies.

Independent upstream oil & gas company, Invictus Energy Limited (ASX: IVZ) has successfully raised around AU$1.49 million following the completion of an entitlement offer that was launched last month. Under the offer, the firm plans to allot 11,445,580 new fully paid ordinary shares as along with 5,722,896 listed options. It is likely that Invictus will issue the new shares and attaching options tomorrow on 14 March 2024.

According to the company, it is well capitalised to advance its ongoing projects along with its appraisal plan for the Mukuyu gas-condensate field, as the firm executed one AU$15 million placement in December 2023 as well. IVZ will get AU$1.5 million from the subsequent rights issue this month.

Strategic investment from Zimbabwean investors   

IVZ Board of Directors met several stakeholders in February including Zimbabwe Government officials and potential gas offtakers. Numerous domestic institutional investors showed interest for a strategic investment into Invictus.

The firm has decided to involve its major shareholder Mangwana Capital to lead the process of strategic investment.

IVZ is pushing forth post well studies
As per the Mukuyu preliminary compositional analysis done for downhole reservoir fluid samples, there exists a rich gas-condensate discovery. It has confirmed high-quality natural gas with minimal impurities, requiring minimal processing for sale to downstream customers.

It has been estimated that its condensate gas ratio (CGR) ranges between 14 to 22 bbls/MMscf of gas from the Mukuyu-2 samples, showing a condensate API gravity of 50-60.

Presently, IVZ is processing additional downhole reservoir fluid and mudgas samples. Also, the company is undertaking further analysis, results of which will be integrated into the geological model for Mukuyu and other prospects of Invictus.

This discovery comes after IVZ recently made two gas discoveries from two of its reservoirs during Mukuyu-2 / ST1 drilling program.

Other activities in process

Invictus is progressing a well test design study for Mukuyu-2 with the objective of outlining optimal test parameters. It will also define a long lead equipment and mobilisation plan to chalk out best suitable timing for the Mukuyu-2 well test.

Simultaneously, IVZ is assessing contract bids for well services required for the well testing and future exploration and appraisal drilling programs.

Invictus is in the final stages of planning a 3D seismic survey for Mukuyu. The findings from the survey will help in delineating reservoir connectivity, fault block configuration, resource volumes and future appraisal well locations. The data will play a significant role in the selection of areas in the field for focused appraisal drilling and early development schemes.

An update on PPSA with Zimbabwe

The recent confirmation of a gas-condensate discovery at Mukuyu-2 well has garnered strong commitment from the Zimbabwe Government to complete the implementation of the Petroleum Production Sharing Agreement (PPSA), says the company.

The PPSA will define a legal and fiscal framework for the life of the Cabora Bassa Project, potentially boosting the confidence for many international parties to propose additional farm-in and alternative financing options for Invictus.

IVZ shares traded at AU$0.098 apiece on 13 March 2024.