Highlights

• Invictus Energy Limited (ASX:IVZ) has raised AU$12 million through the private placement of shares at AU$0.20 per share.
• Funding will be dedicated to the progress of drilling of the Mukuyu prospect, planned in July – August CY22.
• The Company is continuing to progress multiple bids from potential farm-in partners and will update on the farm-in process in due course.

Independent upstream oil and gas company Invictus Energy Limited (ASX:IVZ) has raised funding worth AU$12 million through private placement. This is a strategic achievement at a time when Invictus is proceeding towards the drilling campaign of the Mukuyu-1 well, which remains on track to commence in July.

Notably, the first well in the campaign has been independently estimated to contain 8.2 Tcf + 247 million barrels of conventional gas-condensate. Drilling of the Mukuyu-1 well will test Africa’s largest undrilled onshore oil and gas prospect.

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Placement details

Invictus has raised AU$12 million through a private placement of shares at AU$0.20 per share. Sophisticated and institutional investors will receive a free option on a 1-for-2 basis at a price of AU$0.35 with a one-year term.

Invictus will now issue 60,026,165 new fully paid ordinary shares at the issue price of AU$0.20 per new share. This share price represents a discount of 27.3% compared to the share price on the last trading day before the placement was made. The placement saw the involvement of several existing shareholders, such as the Mangwana Opportunities Fund. Multiple Australian and international institutional investors continue to show support for Invictus’ Cabora Bassa project. PAC Partners acted as lead manager.

Source: © Sasinparaksa | Megapixl.com

Invictus will seek approval at the EGM (on 30 June 2022) for Non-Executive Director and Deputy Chairman Mr. Joe Mutizwa to participate in the placement as well.

Use of funds

Proceeds from the fund will be dedicated to the progress of the Mukuyu prospect, particularly the upcoming Mukuyu-1 drilling program.

So, the funding distribution has been charted as- AU$9 million to be invested in the drilling of Mukuyu-1. Additionally, AU$2.3 million will be kept aside as working capital and AU$0.7 million will be used as the capital raising fees.

Meanwhile, Invictus is continuing to progress multiple bids from potential farm-in partners. As part of a final farm-in agreement, it anticipates having a significant portion of the drilling program funded by a farm-in partner(s).

Invictus’ high impact exploration program in Cabora Bassa Basin | Expert Talks with Scott Macmillan

Positive way forward for Invictus

This is an exciting time for the company as it moves towards its maiden drilling campaign in Zimbabwe. According to Managing Director Scott Macmillan, through the capital raise coupled with the existing cash balance and extra funds via the exercise of in-the-money options, Invictus is now well funded for the developments of Mukuyu-1 well.

©2022 Kalkine Media®

Source- Company announcement, May 2022

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On 23 May 2022, IVZ traded at AU$0.24 with a trading volume of over 5 million shares. The market capitalisation stood at AU$185.48 million.