Invictus seeks fresh funding for Zim ops

INVICTUS Energy has said it has opened fresh talks to beef up its war chest ahead of the planned drilling of its first test well at the Cahora Bassa operation in Zimbabwe.

The announcement came through as the Australia Stock Exchange (ASX)-listed oil explorer requested the bourse’s permission to halt trading in its stock until December 29, when a deal could be announced.

It is the second time since March when the firm, which is hoping to produce Zimbabwe’s first oil or gas, raised about US$5 million through a private placement, has halted the trading of its counter.

However, the firm did not disclose the nature of the transaction.

The firm revealed recently that it would be sinking its first test well during the first half of 2022.

In a statement released Thursday, Invictus said: “The securities of Invictus Energy

Ltd will be placed in trading halt at the request of Invictus pending its releasing an announcement. Unless the ASX decides otherwise, the securities will remain in trading halt until the commencement of normal trading on Wednesday, December 29, 2021.”

Two weeks ago, Cluff Energy Africa acquired significant shareholding in Invictus as it moved to raise the US$20 million required to drill the wells.

Invictus said on December 10 that it had secured a drill rig for the Muzarabani-1 exploration.

Invictus executed a memorandum of understanding (MoU) with Exalo Drilling SA to sink the Muzarabani-1 well.

The parties said there was an option for an additional well to be exercised by February 15, 2022.

The companies are expected binding rig agreement next year.

The firm last had a cash call in March, to sign

araising about US$5 million through a private placement.

Two weeks ago, Invictus entered an agreement with Cluff to unlock capital for the well exploration and drilling campaign.

Invictus said the farm in option agreement with Cluff will see the latter funding 33,33% of the costs for a 25% interest in the Cahora Bassa project.

Invictus will remain statement added.

“Cluff Energy Africa is currently assembling a portfolio of African oil and gas exploration assets with the intent of raising further capital during early 2022 to fund their exploration programmes,” it said.

“Under the terms of the non-binding agreement, Cluff must exercise the option by March 31, 2022 to enter a binding farmin agreement and a joint operating agreement and obtain the necessary funding to meet the farm-in commitment for two wells. as operator, the

“Invictus and CEA will also investigate the options for mitigating carbon emissions from the project including carbon capture and storage or similar solutions to align with Zimbabwe’s strategic objectives,” it said.

Invictus managing director and chief executive Scott Macmillan said: “Invictus is pleased to enter the option agreement with Cluff Energy Africa and work towards formalising our relationship in the Cahora Bassa joint venture over the coming months. Cluff is a like-minded partner and a close cultural fit, and their team has an outstanding track record of making and monetising discoveries in Africa.”

He said Invictus was well placed to achieve significant accretive milestones during 2022 with a number of key catalysts ahead.

Cluff chairman Algy Cluff said the company viewed the Muzarabani project as a rare high-quality, but low-cost opportunity that has world-class scale.