Invictus to commence field operations in the Cabora Bassa Basin – completes further placement to strategic investor
Invictus Energy has announced that the Company is set to commence a field reconnaissance programme in the next fortnight and has completed a further placement for the equivalent of A$220,000 at a share price of US$0.066 with the Mangwana Opportunities Fund under a second tranche of the equity funding agreement as announced on 30 April 2020.
Commencement of field operations in the Cabora Bassa Project
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 in northern Zimbabwe.
The reconnaissance programme and baseline survey consist of the traversing of the proposed infill seismic lines for a planned acquisition campaign in the 2021 dry season. The programme 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 programme is expected to be approximately 30 days and is in the final stages of planning and will be completed before the wet season.
Cabora Bassa Project
The Cabora Bassa Project encompasses the Mzarabani Prospect, a multi-TCF and liquids rich conventional gas-condensate 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.
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 A$222,148 through the placement of 3,404,186 shares at a share price of US$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 six 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
For further technical information regarding the Cabora Bassa Project, see Invictus Energy’s latest presentation: Stockhead Oil & Gas Virtual Conference Presentation July 16 2020
Source: Energy-pedia