Invictus Energy Secures Strategic Investment to Advance Cabora Bassa Project
INVICTUS ENERGY LTD (IVZ) Share Update July 2024 Monday 29th
Invictus Energy Secures Major Investment for Cabora Bassa Project
Invictus Energy Ltd (ASX: IVZ) has announced a significant strategic capital raise of US$10 million, with US$5 million underwritten by the Mutapa Investment Fund of Zimbabwe, to support its high-impact exploration activities in the Cabora Bassa Basin.
Instant Summary:
- Mutapa Investment Fund underwrites US$5 million of US$10 million capital raise.
- Petroleum Production Sharing Agreement to be implemented by Mutapa Investment Fund.
- Mukuyu well testing and appraisal planning completed.
- CB23 seismic data interpretation identifies three new drill-ready prospects.
- Mukuyu 3D seismic survey planning finalized.
- Pilot gas-to-power MOU executed to supply energy to Eureka Gold Mine.
- Farm-out process to secure strategic partner progressing well.
Operational Update
During the quarter ended 30 June 2024, Invictus Energy made significant progress in its exploration and appraisal activities. The company completed the appraisal planning and preparation for the Mukuyu gas-condensate field, including the well test design study for Mukuyu-2. This study aims to define optimal test parameters and determine long-lead equipment needs.
Additionally, Invictus evaluated well services contract bids to secure cost-effective terms, achieving up to 40% cost savings for future drilling and well services. The company also completed the interpretation of 425km of high-resolution CB23 seismic data, identifying three key drill-ready prospects in the Dande Formation: Musuma, Mopane, and Mururo.
Corporate Update
Invictus secured a substantial capital raise of up to US$10 million from a Zimbabwe-based investment consortia, including the Mutapa Investment Fund and the Mangwana Opportunities Fund. This investment demonstrates strong local confidence in the Cabora Bassa Project and will be used for Mukuyu-2 well testing, purchasing long lead items for exploration wells, and general working capital.
The Mutapa Investment Fund will also implement the Petroleum Production Sharing Agreement (PPSA) on behalf of the Republic of Zimbabwe, providing a stable fiscal and legal framework for the project. Invictus is actively engaging with potential strategic partners to support future exploration and development activities in the Cabora Bassa Basin.
Commercialisation Opportunities
Invictus ratified a gas sales MOU with Dallaglio Investments Pvt Ltd and Himoinsa Southern Africa Proprietary Limited for a gas-to-power project to supply electricity to the Eureka Gold Mine. This pilot project aims to provide near-term monetization and proof-of-concept for future full-field developments, with potential expansion up to 50MW.
Transition to New Share Register
During the quarter, Invictus transitioned its share register to Computershare Investor Services Pty Limited, effective from 17 June 2024. Shareholders can access Computershare's platform for updates and communication preferences.
The US$10 million capital raise, underpinned by local investment, is a strong vote of confidence in Invictus Energy's Cabora Bassa Project. This funding will support crucial exploration and appraisal activities, potentially leading to significant resource discoveries. The PPSA provides a stable framework, enhancing project viability and investor confidence.
Investor Reaction:
Analysts are likely to view this announcement positively, given the substantial local investment and strategic partnerships. The cost-saving measures and identification of new drill-ready prospects further bolster the project's potential, making Invictus Energy an attractive investment opportunity in the energy sector.
Conclusion:
Investors should closely monitor Invictus Energy's progress with the Mukuyu-2 well test and the roll-out of the Mukuyu 3D seismic survey. The successful execution of these activities could unlock significant value, reinforcing the company's position in the energy market. Stay informed on the latest developments and consider the long-term potential of Invictus Energy's Cabora Bassa Project.