eBusiness Weekly
Oliver Kazunga
Senior Business Reporter
INVICTUS Energy has raised a total of 35,4 million Australian dollars (US$23,56 million) to support its next phase of operations that include the Mukuyu-2 appraisal well in the Cabora Bassa Basin in Muzarabani and Mbire districts in Mashonaland Central province.
The Australia-headquartered firm, which is searching for oil and gas in the Cabora Bassa Basin recently announced that the post-well analysis of the Mukuyu-1 prospect has confirmed the existence of hydrocarbons in Muzarabani.
The discovery of hydrocarbons provides Zimbabwe with extra sources of energy and opens avenues for massive economic growth and development in line with the aspirations of the Second Republic to achieve an upper-middle-income society by 2030.
In its latest update, Invictus said its private placement to finance preparations for Mukuyu-2 well and Phase 2 exploration programme, which requires A$10 million (US$6,640 million) had been oversubscribed to AU$12,75 million (US$8,5 million).
In February, the company announced the intent to raise US$6,640 million through a private placement to finance preparations for Mukuyu-2 appraisal well and Phase 2 exploration programmes that have already begun.
Appraisal wells are additional wells drilled after discovery to confirm the size of a hydrocarbon deposit and such wells are usually used to run build-up tests, drill stem tests, top and bottom of formation, gather core or fluid samples or other evaluations.
“The company is pleased to announce an Institutional Placement (placement) to raise $12,75 m (US$8,5 million) to support the company’s upcoming Phase 2 exploration and appraisal campaign in Zimbabwe’s Cabora Bassa Basin.
The firm’s managing director Mr Scott Macmillan said his organisation has been overwhelmed by the support of investors in recent months as the company prepare to embark on the next phase of a potentially country-changing exploration and appraisal programme that could provide Zimbabwe with future energy security.
“Combined with our previous private placement in April and the recently completed Share Purchase Plan, Invictus has now raised a total of AU$35,4 million which sees the company’s upcoming Mukuyu-2 appraisal well funded for our next phase of operations in the Cabora Bassa Basin.
“The company is in a strong financial position as we prepare to drill the Mukuyu-2 appraisal well, which is a follow-up to the play opening Mukuyu-1/ST1, which proved the presence of light oil, gas and helium with the very first well drilled in the basin,” he said.
He said the appraisal well data acquisition programme has been upsized to include additional tools to enhance the evaluation and acquire high-quality open-hole wireline log data and fluid samples with the objective of formally declaring a discovery and placing Invictus on a pathway to development.
“We remain on track to spud Mukuyu-2 in the third quarter of CY2023, and I look forward to providing further updates as we finalise the well location and award well services contracts.
“I would like to thank existing and new shareholders that participated in our recent capital raises and look forward to providing more updates on the exciting journey ahead as we work to unlock the significant resource potential of the Cabora Bassa project,” said Mr MacMillan.
