Invictus to raise US$3.98 mln for Zim gas project

Harare (Natural Gas News-New Ziana)- Australian based oil and gas company Invictus Energy on Wednesday said it is raising US$3.98 million from shareholders to pay for Exalo’s drill rig for the Cabora Bassa project in Zimbabwe.

The Cabora Bassa project comprises the Mzarabani and Msasa gas and condensate prospects, which Invictus describes as “world-class multi-trillion ft3” plays.

Early this month, Exalo Drilling signed a Memorandum of Understanding with Invictus Energy Ltd to drill the Muzarabani-1 exploration well with an option for an additional exploration well at the Cabora Bassa project in Zimbabwe.

On Wednesday, Invictus announced a placement of A$3.5 million and a share purchase plan of up to A$2 million to raise a total aggregate amount of up to $5.5 mln. Under the placement, Invictus will issue 35 mln new fully paid ordinary shares at an issue price of A$0.10/share.

The proceeds from the placement will be used to fund a range of initiatives to further develop the Cabora Bassa project.

Invictus will also use the proceeds to pay for the rig mobilisation fee, purchase of long-lead items for the planned 2-well drilling programme and finalisation of the data processing of CB21 seismic survey.

In concert with the placement, Invictus will offer all eligible shareholders a share purchase plan to raise up to A$2 mln, resulting in a maximum of 20 mln shares being issued under the plan.

All eligible shareholders will have the opportunity to apply for up to A$30 000 worth of new shares.

The project received environmental approval from Zimbabwean authorities in August last year.

Natural Gas News – New Ziana