Invictus Energy, an Australia Stock Exchange (ASX) listed extractives junior exploring for oil and gas in Muzarabani, has completed a share placement with investors to raise about AU$8m exploration funding, days after completing an important agreement with the Government.
The funding will be applied towards the next phase of its exploration programme, which will see the firm drilling at least one oil and gas test well before the end of this year.
“Invictus Energy Limited, is pleased to confirm that, further to the ASX announcement on 24 March 2021, it has completed a placement to raise $8.0 million (before costs) by issuing 72 727 273 shares at $0.11 per share (Placement).
“Funds raised will go towards the upcoming 2D seismic campaign in SG 4571, basis of well design, long lead drilling items for the Mzarabani-1 exploration well, drilling rig tender preparation and general working capital,” Invictus said.
The good times are certainly rolling at Invictus Energy and its highly promising Muzarabani oil and gas exploration project, which would have far reaching implications for the Zimbabwean economy in the event of commercial discovery.
On Friday last week Invictus signed a Petroleum Exploration Development and Production Agreement (PEDPA) with the Government of Zimbabwe, at an event attended by President Mnangagwa, his deputy Vice President Constantino Chiwenga and Mines and Mining Development Minister Winston Chitando, who signed on behalf of the Government.
The PEDPA provides the framework for accelerated development of the Muzarabani oil and gas initiative, while also detailing roles and obligations of each party throughout the project lifecycle.
The PEDPA provides the Australian licence holder with the right to enter into a 25-year production licence following the exploration periods. The company is currently in the second exploration period.
The PEDPA also provides for Special Economic Zone (SEZ) status for the Muzarabani Project, which will facilitate a host of fiscal and non-fiscal incentives over the life of the project.
Additionally, the incentives include legal and financial stability, offshore banking, zero capital gains tax, tax holiday periods and 15 percent corporate rate thereafter.
President Mnangagwa said on Friday Zimbabwe’s oil and gas sector represented huge, unique and competitive investment opportunities given the significant potential for value chain linkages.
The President said the impact of the project will be felt in Mashonaland Central Province, Muzarabani and surrounding districts, as well as the wider Zimbabwe economy.
Apart from the potential for energy self-sufficiency, the President said other potential benefits of the oil and gas discovery included electricity generation, liquid petroleum, liquefied petroleum gas (LPG), fertiliser production and petro-chemicals.
Such is the significance of this development that Invictus’ shares were up more than 25 percent on Monday morning, building on recent strong gains that have seen its share price increase more than three-fold in a period of three months.
The Cabora Bassa project, which encompasses the Mzarabani prospect, is a multi-trillion cubic feet and liquids-rich conventional gas condensate target, which is potentially the largest, undrilled seismically defined structure onshore Africa.
The prospect is defined by a robust dataset acquired by French oil giant Mobil in the early 1990s that includes seismic, gravity, aeromagnetic and geochemical data.