HIGHLIGHTS
• Shareholder Entitlement Offer raises $1.5 million
• Mangwana Capital engaged to lead strategic investment process following strong
interest from Zimbabwean institutional investors
• Mukuyu appraisal program and post well studies progressing
• Petroleum Production Sharing Agreement with Republic of Zimbabwe advancing for
implementation
Invictus Energy Limited ("Invictus" or "the Company"), is pleased to provide an update on its
80% owned and operated Cabora Bassa project in Zimbabwe.
Comments from Managing Director, Mr Scott Macmillan
“We’d like to thank our shareholders that participated in the rights issue which has now been
concluded and provided the Company with additional capital to advance our appraisal activity.
“The Invictus Board has recently concluded a successful visit to Zimbabwe and met with key
Government officials following the confirmation of a gas-condensate discovery at Mukuyu to
advance the implementation of the Petroleum Production Sharing Agreement, the conclusion of
which will deliver a number of corporate and project partnering options for the Company.
“We are progressing our appraisal plan of the Mukuyu gas-condensate field on multiple fronts
with a well test for Mukuyu-2 and 3D seismic across the field to inform resource volumes and
future targeted appraisal drilling and early development of the field.”
Shareholder Entitlement Issue Completed
The Company’s Entitlement offer launched on 2 February 2024 has closed with a total of
$1.49 million raised.
With the entitlement offer now concluded, Invictus will allot a total of 11,445,580 new fully
paid ordinary shares and 5,722,896 Listed Options (ASX: IVZOA), raising $1.49 million. The
New Shares and Attaching Options are expected to be issued on 14 March 2024.
Following the successful execution of the $15.0m placement in December 2023 and receiving
a further $1.5m from the subsequent Rights Issue in March 2024, the Company remains well
capitalised to continue to progress its current activities and appraisal plan.
Mangwana Capital engaged to lead strategic investment from Zimbabwean
institutional investors
Following an in-country visit of the full Invictus Board of Directors in late February to meet
with stakeholders including Zimbabwe Government officials and potential gas offtakers, the
Company has received strong interest from multiple domestic institutional investors with the
intent of completing a strategic investment into the Company. Invictus has engaged existing
major shareholder Mangwana Capital to coordinate the strategic investment process.
Ben Mbanga, Managing Director of Mangwana Capital commented:
“Mangwana Capital is pleased to provide further support to Invictus and off the back of the
discovery at Mukuyu there is strong demand from local institutional investors to be a part of an
exciting opportunity which will have a significant impact on the country.”
Mukuyu appraisal program and post well studies progressing
Following the two gas discoveries from the Upper and Lower Angwa reservoirs in recently
completed Mukuyu-2 / ST1 drilling campaign (refer ASX announcement 15 December 2023),
preliminary compositional analysis from fast-tracked downhole reservoir fluid samples has
confirmed a rich gas-condensate discovery in Mukuyu (refer ASX announcement 4 March
2024).
The compositional analysis confirms high quality natural gas containing minimal impurities
(less than 2% CO2 content and nil H2S) which will require minimal processing to prepare for
sale to downstream customers.
Condensate gas ratios (CGR) are estimated between 14-22 barrels per million standard cubic
foot (bbls/MMscf) of gas from the Mukuyu-2 samples with a condensate API gravity of 50-60
as shown in Figure 1.
Additional downhole reservoir fluid and mudgas samples are being processed and expected
to be announced to the ASX once completed. Further analysis is ongoing which will be
integrated into the geological model across the Mukuyu field and the wider portfolio of
prospects and leads in our licence area.
The Company is currently undertaking a number of planning activities as part of its appraisal
of the Mukuyu gas-condensate field.
A well test design study for Mukuyu-2 to define the optimal test parameters and the
subsequent long lead equipment and mobilisation plan to determine the timing for the
Mukuyu-2 well test is in progress.
In conjunction with the well test design work, the Company is currently evaluating well
services contract bids for the well testing and future exploration and appraisal drilling
campaigns.
The Mukuyu 3D seismic survey planning is nearing completion with the preferred contractor.
3D seismic data will assist in delineating reservoir connectivity, fault block configuration,
resource volumes and future appraisal well locations. Given the scale of the Mukuyu gas field
which has over 200km2 of structural closure, the 3D seismic will aid the selection of areas in
the field for focused appraisal drilling and early development schemes.
Petroleum Production Sharing Agreement with Republic of Zimbabwe advancing for
implementation
In February 2024, the Invictus Energy Board met in-country with multiple key stakeholders.
This included several meetings with the top levels of Zimbabwean Government.
Since the confirmation of a gas-condensate discovery from the Mukuyu-2 well there has
been a strong commitment from the Zimbabwe Government to progress and complete the
implementation Petroleum Production Sharing Agreement (PPSA).
The PPSA will provide a stable and transparent legal and fiscal framework across the life of
the Cabora Bassa Project and anticipated to deliver several additional large international
parties with the necessary confidence to progress additional proposals on farm-in and
alternative financing options for the Company.