PERTH (miningweekly.com) – Upstream oil and gas company Invictus Energy will raise A$12-million through a share placement to sophisticated and institutional investors.
Under the placement, the ASX-listed company will issue more than 60-million shares, at a price of 20c each, under its existing placement capacity. The issue price represented a 27.3% discount to Invictus’ last closing price.
Proceeds from the placement will be used to fund drilling at the company’s Cabora Bassa project, in Zimbabwe, with the first well in the campaign targeting the Mukuyu prospect, which has been estimated to contain 8.2 Tcf and 247-million barrels of conventional gas condensate.
“Through the completion of this capital raise, in conjunction with our existing cash balance and additional funds delivered via the exercise of in-the-money options, the company is well funded for the Mukuyu-1 well,” said MD Scott Macmillan.
“We also continue to progress bids received from multiple potential farm-in partners and will provide a further update on the farm-in process in due course.
“We have a number of catalysts in the lead up to the basin opening drilling campaign including an update to the prospect and lead inventory encompassing the expanded SG 4571 licence area, selection of the second well location to follow on from Mukuyu-1, and the mobilisation of the Exalo 202 drilling rig.
“Drilling of the Mukuyu-1 well, which will test Africa’s largest undrilled onshore oil and gas prospect, remains on track to commence in July.”