By ETimes
Oil and gas explorer Invictus Energy was fronting investors with a US$20 million share placement on Friday last week to continue exploration at two wells at its Zimbabwean projects.
Invictus Energy is tapping the equity capital markets second time this year, while it drills oil and gas targets in Muzarabani.
Invictus had its joint lead managers, PAC Partners and Jett Capital Advisors, offering 87 million shares at 23 cents each, a 25.8 per cent discount to the last close. The offer price included a one-for-one attaching option with a 40 cents strike price and five-year term.
The term sheet said Invictus’s Mukuyu prospect was the largest un-drilled conventional oil and gas prospect. Invictus is planned to start drilling at Mukuyu-1 wellsite in September and had earmarked US$10 million of the raise’s proceeds for it.
Rest of the money (US$8.8 million) was for Basin margin target well at Cabora Bassa exploration licences.
PAC and Jett were calling for bids by 9am Monday, August 29. They had room for US$5 million more in oversubscriptions, according to the therm sheet.
Incivtus would have a US$263.2 million market capitalisation after the raise. Friday’s cash call is its second equity raise since May, when it raised US$12 million for Mukuyu drilling.
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 – Harare