Invictus Energy Limited (ASX:IVZ): Completes Tranche 2 Placement With Mangwana, Field Operations To Begin In Cabora Bassa Basin

Summary

  • Oil and gas explorer, Invictus Energy has completed Tranche 2 Placement with Mangwana Opportunities Fund.
  • Invictus will soon commence field operations in the Cabora Bassa Basin.
  • The reconnaissance program along with baseline survey comprises the traversing of the proposed infill seismic lines for an acquisition campaign in the 2021 dry season.
  • The funds raised from the Placement will be used for the upcoming field program and general working capital.
  • Approval of the Environmental Management Plan has been granted, COVID-19 restrictions are finally easing, and the cultural ceremonies in the Muzarabani and Mbire District are completed.

Independent oil and gas exploration company, Invictus Energy Limited (ASX:IVZ) will finally commence activity on the ground in the Cabora Bassa Project. The Company has received all of the necessary approvals, with COVID-19 restrictions being eased in Zimbabwe.

Besides, Invictus has met another milestone- Tranche 2 placement with Mangwana Opportunities Fund, under the share subscription agreement announced in April 2020, has been executed. Funds are integral for the upcoming field program.

Following the development updates, the shares of Invictus Energy traded up by 1.6 per cent, quoting $ 0.062 by the close of trading on 12 October 2020.

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Placement Concludes with Mangwana Opportunities Fund

Invictus has finally completed a further Placement (Second Tranche) under the share subscription with Mangwana Opportunities Fund agreement that was announced on 30 April 2020. The placement raises the equivalent of $ 222,148, issuing 3,404,186 shares at a share price of $ 0.066. The issue price represents a 9 per cent premium to the last closing price.

The shares that are issued to Mangwana will reportedly be held in escrow for a period of six months (starting from the date of completion). Besides, the agreement makes provision for an additional equity investment by Mangwana for the Project over the subsequent 12-24 months. There is also the provision to support Invictus in accomplishing its strategic goals in-country.

Managing Director Scott Macmillan informed that the funds from the Placement will be used for the upcoming field program and general working capital.

Upcoming Field Program at the Cabora Bassa Project

Specific factors are playing a crucial role as major drivers for Invictus to commence field operations in the Cabora Bassa Basin.

Firstly, Invictus was recently granted the approval of the Environmental Management Plan, which completes the permitting requirements and empowers the Company to launch on-ground activities in the field (seismic acquisition as well as exploration drilling).

Besides, COVID-19 related restrictions are being gradually eased in Zimbabwe. Finally, the final cultural ceremonies in the Muzarabani and Mbire Districts (where the Cabora Bassa Project is located) have been completed.

The reconnaissance program, along with baseline survey, comprises of the traversing of the proposed infill seismic lines for a planned acquisition campaign in the 2021 dry season. The program will capture details like-

  • Topography
  • Existing access roads
  • Drainage
  • Vegetation cover
  • Soil types
  • Rock exposures
  • A sampling of any gas seeps and natural oil
  • Areas of development (constructions and cultivation)
  • Any sites of religious, cultural or historical importance

The program duration is expected to be nearly 30 days. Currently, it is in the final stages of planning and will most likely be completed before the wet season.

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Exploration and appraisal of the Cabora Bassa Project remain on-track. Having said so, Invictus Energy seems to be on the right trajectory to becoming a significant energy supplier in Southern Africa, as the region faces a severe energy crisis.

If the Company’s exploration program is successful, a significant opportunity may open up to fulfil the region’s energy demand. Meanwhile, the hunt for a senior farm-in partner remains ongoing.

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