Why Did Invictus Energy Do a Capital Raise and How Will It Use the Funds?

$IVZ Why Did Invictus Energy Do a Capital Raise and How Will It Use the Funds?

Invictus Energy Ltd: Strategic Capital Raising and Exploration Initiatives

Invictus Energy Ltd, an independent oil and gas exploration company, is making significant strides in the energy sector. Headquartered in Perth, Australia, with operations in Harare, Zimbabwe, Invictus is leading a high-impact exploration program in the untested Cabora Bassa Basin in northern Zimbabwe. The company's Board and Management team, including Non-Executive Chairman John Bentley and Managing Director Scott Macmillan, guide this initiative.

Recent Financial Milestones

A major financial achievement for Invictus has been the successful raising of A$15.0 million through an Institutional Placement. This capital injection will bolster the company's activities in the Cabora Bassa Project, where it holds an 80% interest. The placement, heavily oversubscribed, involved issuing new shares at a discounted rate, coupled with an attractive option offering. This strategic financial move is set to position Invictus favorably in its upcoming ventures.

Cabora Bassa Project: A Hub of Activity

The Cabora Bassa Project, encompassing ... a 360,000-hectare area in Zimbabwe, includes the promising Mukuyu Gas Field and various Basin Margin prospects. Recent gas discoveries in the Upper and Lower Angwa formations through the Mukuyu-2 well have heightened interest in this region. The raised funds are earmarked for multiple critical activities, including well testing, 3D seismic preparations, and drilling campaign planning for the Mukuyu Gas Field and other prospects.

Investment in Exploration and Testing

The focus of the capital raised is to extend the success of the dual gas discoveries in the Mukuyu-2 well. Plans include testing these wells, preparing for a comprehensive 3D seismic survey over the Mukuyu gas field, and procuring long lead items for a new high-impact exploration well. The company is currently evaluating additional drill-ready prospects based on recent seismic surveys, signaling an active and ambitious exploration phase.

Entitlement Offer and Investor Involvement

Invictus is set to launch an Entitlement offer, with details to be announced in January 2024. This initiative will extend investment opportunities to all shareholders, demonstrating the company's commitment to inclusive growth. The Placement saw participation from a mix of new and existing sophisticated and institutional investors, underlining the market's confidence in Invictus' strategic direction.

Joint Lead Managers and Financial Advisors

The placement was successfully managed by Canaccord Genuity Australia and PAC Partners, with Alpine Capital Pty Ltd serving as the financial advisor. This collaboration underscores the significant interest and confidence in Invictus Energy’s prospects and strategic direction.

Future Prospects

The recent developments at Invictus Energy Ltd signify a bold step forward in the exploration of sub-Saharan Africa's energy resources. The successful capital raise and strategic planning for the Cabora Bassa Project showcase Invictus' strong position in the oil and gas sector and its commitment to discovering and developing high-impact energy resources in Africa.

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