Invictus Energy raises US$10m for Mukuyu-2 drill site in Zimbabwe

By Tatira Zwinoira | NewsDay |

Australian energy firm, Invictus Energy Limited, has raised AU$15 million (US$10,25 million) through an institutional placement of new shares to fund operations at its Mukuyu 2 oil and gas drill site.

Invictus yesterday announced that it had issued approximately 115 384 616 new shares on the Australian Stock Exchange (ASX) at a price of AU$0,13 per share that were fully paid for.

Following the successful raising of capital on the ASX, trading of Invictus shares resumed as it had implemented a trading halt last week Thursday.

The placement of the shares comes after the firm early this month announced a gas discovery at its Mukuyu 2 drill site. The firm is exploring for oil and gas at its Cabora Bassa project in Muzarabani, Mashonaland Central province.

“Invictus Energy Limited is pleased to announce it has successfully raised AU$15 million through an institutional placement to continue funding operations at its 80% owned and operated Cabora Bassa project in Zimbabwe,” the company said yesterday following the resumption of the trading of its shares on the ASX.

“The capital will ensure the company is well funded for a range of activities to roll out at its Cabora Bassa project in northern Zimbabwe. Earlier this month Invictus declared two gas discoveries in the Upper and Lower Angwa formations through the Mukuyu-2 well.”

Invictus said the funding would be utilised for a well test on gas discoveries announced thus far, preparation for 3D seismic over the Mukuyu gas field and long lead items for a planned high impact exploration well.

According to the ASX-listed firm, the placement of the shares represented a 16% discount to the company’s share price on December 21, 2023, and a 21% discount to the five-day volume weighted average price prior to that date.

“Each applicant will receive one (1) free listed IVZOA option (exercise price AU$0,20, expiry June 7, 2026) for every two (2) shares subscribed for and issued under the placement, with up to 57 692 308 IVZOA options to be issued,” IEL said.

“Invictus will also launch an entitlement offer to all shareholders with details of the rights issue to be released to the market in January 2024. The placement was participated in by a range of new and existing sophisticated and institutional investors.”

The capital raising initiative comes after the firm lost its gas discovery market capitalisation bump that saw Invictus add the equivalent of US$38, 08 million to its total valuation to reach US$173,59 million on the ASX.

As of yesterday, however, the firm had lost the equivalent of US$43,91 million from its market capitalisation for a valuation of AU$200,09 million (US$137,15 million).

Invictus managing director Scott Macmillan welcomed the funds from institutional and sophisticated investors as they will assist ongoing operations at its Cabora Bassa project.

“We are currently maturing additional drill ready prospects from our recently completed CB23 infill seismic survey, and excitingly planning for our next well location within our commanding 360 000-hectare project area,” he said.

“I thank those who continue to support Invictus Energy’s operations as we enter a much-anticipated phase of project activity at Cabora Bassa.”