Invictus Energy to raise AU$10 million to fund preparations for Mukuyu-2 well & Phase 2 exploration

Key Takeaways:

• Invictus Energy to raise AU$10 million via a placement to fund preparations for Mukuyu-2 well & Phase 2 exploration.
• The Company has invited present shareholders to participate in SPP.

Invictus Energy Limited (ASX: IVZ), an independent oil and gas exploration company focused on high-impact energy resources in sub-Saharan Africa, announced to raise AU$10 million via Placement following the decision to advance preparations for an appraisal and exploration campaign in Zimbabwe’s Cabora Bassa Basin. The Company’s existing shareholders are also invited to participate in the Share Purchase Plan (SPP) on the same terms and conditions.

The proceeds from the placement will be used to support the preparation for the Mukuyu-2 appraisal well program and Phase 2 exploration program. It includes:

• Preparation for Mukuyu-2 Well (including long lead items)
• 2D Seismic & Processing of Eastern leads on trend with Mukuyu to drill ready targets.

Invictus Energy got assistance from its existing as well as its new shareholders as the Company prepares itself to follow up the successful Mukuyu-1 exploration campaign.

Preparations of the Phase 2 exploration and appraisal campaign at the Cabora Bassa Project are underway, with the 2D seismic campaign likely to commence in May 2023.

This seismic campaign will help mature several known leads in the established fairway into drill ready prospects along the trend from Mukuyu as well as in the extremely prospective Basin Margin play.

Besides this, the Company is on track to spud the Mukuyu-2 appraisal well in Q3 2023, aiming several hydrocarbons (gas-condensate and potentially light oil) bearing intervals that came across in the Mukuyu-1/ST1 well in the Upper Angwa, Pebbly Arkose, and Post Dande formations.

More about the Placement:

As pointed out above, the placement was supported by sophisticated as well as institutional investors. Under the placement, IVZ will issue 83,333,333 new fully paid ordinary shares at AU$0.12 per new share, representing a 20% discount to the last traded price of IVZ shares on 3 April 2023.

Placement participants will be entitled to a one-for-two listed option for every share issued, exercisable at AU$0.20 with a three-year term.

About Mukuyu-2 and 2D seismic acquisition program:

Preparations for the Mukuyu-2 appraisal program and the Cabora Bassa Phase 2 exploration campaign are progressing well. The 2D seismic acquisition program.

The 2D seismic acquisition program is likely to start in May 2023. However, it is now pending for the award of the seismic contract. It will cover the eastern portion of EPO 1848 & 1849, including IVZ’s experience from the successful CB21 Seismic Survey acquisition.

The new seismic campaign will be intended at maturing several leads plus the proven play on trend to the east of Mukuyu and added leads along the highly prospective Basin Margin play.

The acquisition of modern 2D seismic may let IVZ to mature several of these leads, previously identified on reprocessed vintage seismic data, to drillable prospects. The drilling of the first well in the Mukuyu appraisal program, Mukuyu-2, is in line with previous guidance, with an expected spud date early in Q3 2023.

Mukuyu-2 will aim for several hydrocarbons (gas-condensate and potentially light oil) bearing intervals in the Mukuyu-1/ST1 well in the Upper Angwa and Pebbly Arkose formations, intending to confirm a gas condensate discovery. The appraisal well will also test the Post Dande horizon away from the main east-west fault on the southern flank and the deeper potential in the residual Upper Angwa formation.

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