Join our daily newsletter At The Bell to receive exclusive market insights
- Oil and gas explorer Invictus Energy (IVZ) launches a $12 million private placement
- The company will issue roughly 60 million shares to sophisticated and institutional investors at 20 cents, representing a hefty 27.3 per cent discount to the last closing price
- Invictus is using the money for an upcoming drilling program targeting the Mukuyu prospect within its majority owned and operated Cabora Bassa project in Zimbabwe
- The company is also progressing bid discussions with potential farm-in partners to fund a large portion of the drilling effort
- IVZ shares are down 10.9 per cent and trading at 24.5 cents at 12:40 pm AEST
Invictus Energy (IVZ) has launched a private placement to raise $12 million.
The company received commitments from sophisticated and institutional investors to raise the money through the issue of about 60 million shares to be priced at 20 cents each.
The issue price marks a 27.3 per cent discount to IVZ’s last closing share price on May 18 and a 9.5 per cent discount to the five-day volume-weighted average price.
Managing Director Scott Macmillan was pleased with the interest and participation from new and existing investors.
“We are pleased to welcome new institutional investors onto our share register at an exciting time for the company as we prepare to embark on our maiden drilling campaign in Zimbabwe. I’d also like to thank existing shareholders that participated in the placement for their continued support,” Mr Macmillan said.
Invictus Energy will allocate the placement funds towards an upcoming drilling program at its 80 per cent-owned and operated Cabora Bassa project in Zimbabwe.
Roughly $9 million will fund the drilling of the Mukuyu-1 well within the Mukuyu prospect which has been independently estimated to contain 8.2 trillion cubic feet and 247 million barrels of conventional gas-condensate.
The oil and gas explorer expects the drilling program will begin in July.
The remaining funds will cover working capital and fees associated with the capital raise.
“Through the completion of this capital raise, in conjunction with our existing cash balance and additional funds delivered via the exercise of in-the-money options, the company is well funded for the Mukuyu-1 well,” Mr Macmillan stated.
In the aim of funding a large portion of the drilling program, Invictus has been progressing discussions with potential farm-in partners.
The company reportedly received three farm-in offers in late April — one of which was an updated bid from Cluff Energy Africa who the company signed a farm-in option deal with in December 2021.
A preferred bidder is yet to be announced.
IVZ was down 10.9 per cent on the market to trade at 24.5 cents at 12:40 pm AEST.
