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Invictus to commence field operations in the Cabora Bassa Basin, Zimbabwe


Map source: Invictus Energy

  • Field reconnaissance program includes the traversing of proposed infill seismic lines
  • COVID restrictions and travel eased in Zimbabwe and cultural ceremonies completed
  • Tranche 2 placement with Mangwana Opportunities Fund executed at 6.6c for AUD$222k at a 9% premium to last closing price.

Invictus Energy is set to commence a field reconnaissance program in the next fortnight and has completed a further placement for the equivalent of AUD$220k at a share price of $0.066 with the Mangwana Opportunities Fund under a second tranche of the equity funding agreement as announced on 30 April 2020.

Following the approval of the Environmental Management Plan, easing of COVID-19 related restrictions and the completion of the final cultural ceremonies in the Muzarabani and Mbire Districts, the Company will commence field operations in the Cabora Bassa Basin.

The reconnaissance program and baseline survey consist of the traversing of the proposed infill seismic lines for a planned acquisition campaign in the 2021 dry season. The program will capture details such as topography, existing access roads, drainage, vegetation cover, soil types, rock exposures, sampling of any natural oil and gas seeps, areas of development (constructions and cultivation), plus any sites of cultural, religious or historic importance. The duration of the program is expected to be approximately 30 days and is in the final stages of planning and will be completed before the wet season.

Managing Director Scott Macmillan commented:
“We are extremely pleased to commence our activity on the ground in the Cabora Bassa Project having now received all of the necessary approvals and restrictions in the country being eased. The Company has a window of opportunity to carry out a reconnaissance program prior to the onset of the rainy season so that we can map out the routes for the planned seismic acquisition campaign next year. This exercise will enable us to map out the optimal route ahead of the survey which will reduce the acquisition time and maximise efficiency of the survey.

The Company is also pleased to have completed a second tranche of funding from the Mangwana Opportunities Fund at a premium of 10% to the previous closing share price. The funds will be used for the upcoming field program and general working capital.”

Completion of Placement with Mangwana Opportunities Fund

The Company has completed a further placement (Second Tranche) under the share subscription agreement announced on 30th April 2020. The placement raises the equivalent of $AUD 222,148 through the placement of 3,404,186 shares at a share price of $0.066; a 9% premium to the last closing price. The shares issued to Mangwana will be held in escrow for 6 months from the date of completion. The agreement makes provision for a further equity investment by Mangwana for the project over the next 12-24 months as well as assisting the Company in achieving its strategic goals in country.

Key Terms – Mangwana Share Subscription

  • Total of up to four tranches of funding available calculated at market rates
  • 12 month term which may be extended by a further 12 months
  • Payments to be made to the Company’s local ZWL account
  • Shares will be held in voluntary escrow for a period of 6 months from issue
  • On completion of first tranche of funding Mangwana have the right to appoint a director to the board of Invictus Energy Resources Zimbabwe, the Company’s wholly owned subsidiary
  • On completion of fourth tranche of funding Mangwana have right to nominate a director to the board of Invictus subject to normal approvals
  • Agreement may be terminated by agreement of the Parties at any time

Cabora Bassa Project

The Cabora Bassa Project encompasses the Mzarabani Prospect, a multi-TCF and liquids rich conventional gascondensate target, which is potentially the largest, undrilled seismically defined structure onshore Africa. The prospect is defined by a robust dataset acquired by Mobil in the early 1990s that includes seismic, gravity, aeromagnetic and geochemical data.

KeyFacts Energy: Invictus Energy Zimbabwe country profile

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