Oliver Kazunga, Senior Business Reporter
AUSTRALIA-Stock Exchange-listed miner, Invictus Energy, says it has completed a placement to raise US$1,5 million through rights issue as it seeks partners in the proposed oil project in Muzarabani.
In a quarterly update for the period ending September 30, 2019, the mining concern announced that it had received “strong” interest from exploration and production companies as well as private equity investors seeking to partner it in the proposed Muzarabani oil project.
In a statement on Monday, the oil and gas exploration and mining company said it has completed the placement to raise the funding it requires.
“Invictus Energy Limited is pleased to confirm that further to the announcement on November 12, 2019 it has completed a placement to raise $1,5 million (before costs) by issuing 57 692 314 shares at an issue price of $0,026.
“Shares were issued to new and existing institutional and sophisticated investors under the company’s existing ASX (Australia Stock Exchange) Listing Rule 7.1 and 7.1A placement capacity,” it said.
The placement saw a total of 18 592 125 shares being issued under the company’s Listing Rule 7.1 allowance while 39 100 189 shares were also issued in accordance with Listing Rule 7.1A.
“Together with the existing cash reserves, the new funds ensure Invictus is well funded through this growth phase as farm-out discussions develop, preparatory works for the on ground exploration phase commence, the company progresses its corporate social responsibility programme within the community resulting from the completed Environmental Impact Assessment field survey, and Government discussions on the petroleum regulatory framework.”
The Environmental Management Agency (EMA) has approved an Environment Impact Assessment prospectus for the proposed oil project.
Invictus Energy has confirmed the potential of oil in Muzarabani, Cabora Bassa Basin, 25 years after one of the United States of America’s major oil firms, Mobil, carried out similar studies in the area and left.
Under the first phase of exploration work, Invictus Energy has been able to mature the acreage and prospectivity in about 12 months since the acquisition of the project and complete the work programme obligations ahead of schedule.
The technical work for this phase of the project has been completed and the company is focused on completing the farm out process in progress.
The Muzarabani prospect is estimated to contain 8,2 Tcf plus 250 million barrels of conventional gas/ condensate (gross mean unrisked) across five horizons while the Msasa Prospect identified under the same permit (SG 4571) is estimated to contain 1,05 Tcf plus 44 million barrels of conventional gas/condensate (gross mean unrisked) across three horizons.
Unrisked reserves already developed by drilling and production have a very reasonable certainty of being produced while risked reserves are either probable or possible reserves depending upon the amount of uncertainty involved and basically represent poorly developed or undeveloped oil and gas fields. — @okazunga