Invictus Energy today announced the completion of a $25 million private placement, which means the Company is funded for its upcoming high-impact exploration well in Zimbabwe’s Cabora Bassa basin.

The Exalo Drilling S.A. Rig 202 is expected to spud the first well, Mukuyu-1, in early September, targeting an estimated 20 trillion cubic feet and 845 million barrels of conventional gas-condensate.

The second well, Baobab-1, will drill a shallower and potentially more liquid prone target, which displays similarities to the prolific East Africa Rift “String of Pearls” play.

Following the assessment of a range of options, including farm-in bids from multiple interested parties, Invictus’ Board and Management elected to sole fund the initial stages of the Company’s high-impact drilling campaign, which will target the Mukuyu and Baobab (Basin Margin) prospects.

This decision was made with careful consideration of several factors, including:

• The significant increase in the prospectivity of the Caborra Bassa project following the gazettal of additional exploration tenure and consequential de-risking of the campaign
• Maintaining a material ownership of the expanded acreage encompassing the new Basin Margin play, plus additional prospects and leads, providing shareholders with the largest exposure to drilling success
• Consideration of sole funding via the Company’s own equity capital in comparison to the dilutive impact shareholders would absorb at the project level via any potential farm-in agreements
• The avoidance of time delays and costs associated with executing and undertaking a (or multiple) farm-in partnership(s).

The Company remains open to strategic partnering opportunities in the future that could add value for shareholders as it continues to progress development of the Cabora Bassa project. 

Invictus Managing Director Scott Macmillan commented:
“We are moving into a very exciting period for Invictus with the drilling of two high impact exploration wells aimed at unlocking the resource potential of the Cabora Bassa Basin.

“Through the completion of this capital raise, in conjunction with our existing cash balance, we are funded for the upcoming exploration campaign, which will test Africa’s largest undrilled onshore oil and gas prospect in Mukuyu, and a potentially play opening prospect in Baobab, which displays similarities to the prolific discoveries in the East Africa Rift System.

“I would also like to thank existing shareholders that participated in the Placement for their continued support, and multiple Australian and international institutional investors who continue to back our Cabora Bassa project.”

KeyFacts Energy: Invictus Energy Zimbabwe country profile