Invictus starts drilling Mukuyu-2
Nqobile Bhebhe, [email protected]
AUSTRALIA-listed on Wednesday began the much-anticipated drilling of its second exploratory well, Mukuyu-2 and the mining house has secured firm commitments from new and existing sophisticated and institutional investors to raise A$15 million.
Mukuyu-2 will be drilled to a planned total depth of 3,750 metres.
Drilling and evaluation of the well is expected to take approximately 50 to 60 days to complete.
The firm said, if successful, the project could be transformational for the company, Zimbabwe and much of southern Africa’s future energy needs.
Invictus is exploring oil and gas in Muzarabani and Mbire districts in Mashonaland Central Province and results from the seismic survey have indicated the presence of hydrocarbons, an organic compound consisting of light oil, helium, and gas.
Early this year, it announced it had found natural gas and oil reserves, but technical hiccups experienced on the Mukuyu-1 well prevented the company from extracting a fluid sample to fulfill regulatory requirements to declare a commercial discovery.
In separate updates yesterday, Invictus Energy managing director, Mr Scot McMillan said the development is a significant milestone and has vast potential to transform the country and much of southern Africa’s future energy needs.
“This is an exciting and long-anticipated moment for Invictus and our shareholders, and the commencement of our second drilling campaign is a significant milestone. Following our successful basin opening Mukuyu-1 wildcat well completed last year, which proved a working petroleum system and multiple hydrocarbon bearing reservoirs has de-risked future drilling and provides us with increased confidence in Mukuyu-2.
“Mukuyu-2, if successful, could be transformational for the Company, Zimbabwe and much of southern Africa’s future energy needs.”
The confirmation of hydrocarbons in Zimbabwe creates an opportunity for an additional source of energy for Zimbabwe, which could unlock a number of other massive economic growth opportunities.
Potential downstream industries that may be created in the event of commercial discovery include job creation, growth of export earnings, and Government revenue.
Recently, officials said there are plans to construct a gas-powered electricity plant.
On the financial side, Mr McMillan noted that they have secured firm commitments from new and existing sophisticated and institutional investors to raise A$15 million via a two-tranche placements.
The capital raised will ensure the firm is well funded for the Mukuyu-2 exploration campaign, providing project contingency and for well evaluation and testing subsequent to the drilling campaign completion.
Mr McMillan said Canaccord Genuity (Australia) Limited and PAC Partners Securities were appointed Joint Lead Managers to the Placement.
Based on the update, under the Placement, Invictus will issue approximately 100,000,000 new fully paid ordinary shares at an issue price of A$0.15 per New Share.
Tranche 1 of the Placement will comprise the issue of approximately 50,000,000 New Shares to raise circa A$7,5 million. Tranche 2 of the placement will raise an additional A$7,5 million subject to shareholder approval to be sought at the Company’s upcoming Annual General Meeting set for late
“We are pleased to welcome new institutional investors onto our share register at an exciting time for the Company as we finalise preparations to embark on our Mukuyu-2 appraisal well drilling campaign in Zimbabwe.
“I also thank existing shareholders that participated in the Placement for their continued support, ensuring the Company is well funded to the next step of our high impact exploration campaign aimed at opening up the Cabora Bassa Basin,” said the managing director. — @nqobilebhebhe