Oil and gas firm Invictus Energy raises US$17m to start Zimbabwe drilling campaign

Spread This News

By Agencies

Australia’s Invictus Energy has raised A$25mn ($17.2mn) via a private placement to fund the initial drilling campaign in Zimbabwe’s Cabora Bassa basin, the company revealed Wedsneday.

“Following the assessment of a range of options, including farm-in bids from multiple interested parties, Invictus’ board and management elected to sole fund the initial stages of the company’s high-impact drilling campaign, which will target the Mukuyu and Baobab prospects,” the company said.

Proceeds from the placement will be used to fund the drilling programme for the Mukuyu-1 well, testing the central fairway play, and Baobab-1, which will test the basin margin play. Mukuyu-1 well drilling will cost A$10mn and Baobab-1 will cost A$13.5mn, the company said.

Mukuyu-1 is expected to spud in early September with the Exalo Rig 202 in place and final preparations underway to commence drilling. The well will target an estimated 20 trillion ft3 and 845mn barrels of gas condensate, with drilling across all seven stacked targets anticipated to take 45 – 60 days to complete.

Civil works have started at the Baobab-1 wellsite to ensure drilling can follow immediately after the completion of Mukuyu-1, Invictus said. The drilling of Baobab-1 is estimated to take approximately four weeks to complete, following the mobilisation of Exalo Rig 202 to the well site.

An independent prospective resource estimate for the basin margin prospects is in preparation and will be released once completed, the company said.

Invictus said it remains open to strategic partnering opportunities in the future that could add value for shareholders as it continues to progress the development of the Cabora Bassa project.