INVICTUS Energy has managed to raise US$8 million through a securities purchase plan (SPP) and the funds will be used for the mobilisation of the Exalo #202 drilling rig and long lead items for the two-well drilling campaign at the Cabora Bassa project.
The Australian Securities Exchange-listed firm is exploring for oil and gas in the Cabora Bassa Basin in Zimbabwe, which is one of the largest under-explored interior rift basins in Africa.
According to its March 2022 quarterly activities report, the firm launched an SPP on 10 January to raise up to US$2 million. However, overwhelming demand saw the SSP doubled to US$4 million.
The SPP was supported and oversubscribed by Invictus shareholders with a total of 39 999 775 SPP shares issued.
“Together with the US$4 million placement carried out in the December quarter, Invictus has raised a combined US$8 million,” the report reads in part.
“The funds will be used for the mobilisation of the Exalo #202 drilling rig and long lead items for the two-well drilling campaign at the Cabora Bassa Project in Zimbabwe. A portion of the funds raised were also used for finalisation of CB21 Seismic Survey data processing, as well as for general working capital.”
During the quarter, Invictus’ 80% owned subsidiary Geo Associates executed a heads of agreement with the Sovereign Wealth Fund of Zimbabwe to increase the Special Grant 4 571 licence area from 100 000 hectares to 709 300 hectares.
The award is awaiting customary government gazettal.
The company also agreed to increase the minimum work programme obligation for the current second exploration period to drill two exploration wells, including the Mukuyu-1 prospect (previously named Muzarabani) and one exploration well in the expanded area.
“Rig contract Invictus executed a binding drilling rig contract with Exalo Drilling SA to drill the Mukuyu-1 exploration well, with an option for an additional exploration well,” it said.
The Exalo #202 rig is expected to mobilise from Tanzania to the Cabora Bassa project in May, with the potential basin opening drilling campaign currently scheduled to start in June.
The necessary casing, wellheads and ancillary long lead items for the two-well drilling campaign have already been secured.
Invictus Energy Ltd is an independent upstream oil and gas company listed on the Australian Securities Exchange. Invictus is opening one of the last untested large frontier rift basins in onshore Africa – the Cabora Bassa Basin – in northern Zimbabwe through a high-impact exploration programme.