Online Reporter
Golden Sibanda
INVICTUS Energy, which is developing an oil and gas project in northern Zimbabwe, says the second tranche of its US$10 million capital raise exercise has been oversubscribed by institutional investors.
The company said it has since accepted just over US$2 million in oversubscriptions from the investors, in a development it said demonstrated strong confidence in the company’s project.
Invictus announced in December last year that it had discovered condensate deposits at its Mukuyu fields in Mbire, Mashonaland Central Province.
The company needed the funding to conduct further exploration and wellsite development works in the expansive prospective area, with no timelines known yet when the first production will take place.
While developing oil/gas projects is a longterm and capital intensive process, the company has already signed agreements for the near term supply of gas while plans are afoot to quickly set up a gas to energy facility.
“Invictus Energy Limited is pleased to announce that following shareholder approval at the Extraordinary General Meeting held on October 21, 2024, the second tranche of the US$10 million institutional placement managed by Mangwana Capital (Private) Limited, as announced to the ASX on July 29, 2024, has been completed,” Invictus said.
Mangwana Capital, an investment advisory firm, is a shareholder in Invictus Energy.
“With the capital secured, we are equipped to accelerate the next phase of our exploration and development activities at the Cabora Bassa Project.
“We remain committed to delivering long-term value for our shareholders and contributing to Zimbabwe’s energy independence and economic growth,” Invictus said.
Due to strong demand, the company said it had also accepted an additional US$2 million in oversubscriptions on the same terms.
Tranche one (US$5 million) of the placement was partially underwritten by the Mutapa Investment Fund of Zimbabwe, and was completed in August 2024.
The strategic investment is historic for both Invictus and investors in Zimbabwe, who can now hold and trade securities in the company through its secondary listing on the Victoria Falls Stock Exchange, Invictus said.
Managing director Scott MacMillan said the completion of this strategic capital raise was testament to the strong investor confidence in our Cabora Bassa Project and its potential to drive transformative growth in Zimbabwe’s energy landscape.
“We are grateful for the enduring and overwhelming local and institutional support.
“With the capital secured, we are equipped to accelerate the next phase of our exploration and development activities at the Cabora Bassa Project.
“We remain committed to delivering long-term value for our shareholders and contributing to Zimbabwe’s energy independence and economic growth,” Mr MacMillan said.
In late 2023, Invictus Energy’s Mukuyu drilling campaign discovered two gas deposits in the Lower and Upper Angwa formations of its prospective areas.
This discovery was ranked the second largest oil and gas discovery in sub-Saharan Africa in 2023 by Wood Mackenzie, a leading global data and analytics solutions provider for renewables, energy and natural resources.
The Mukuyu discovery is estimated to contain 1,3 trillion cubic feet (Tcf) of gas.
The discovery of gas in Zimbabwe could make the country a major future producer of gas, which could lead to economic benefits such as energy security, job creation, and faster economic growth.
It would also help address the country’s acute energy deficit, which State power utility Zesa Holdings manages through power rationing lasting several hours a day.
leeroy mupariri
