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INVICTUS ENERGY LTD — Capital/Financing Update 2022
May 22, 2022
65149_rns_2022-05-22_9c810489-9d6d-4a25-bd94-ad2b9f4fa255.pdf
Capital/Financing Update
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23 May 2022
HIGHLIGHTS
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$12.0m private placement to sophisticated and institutional investors
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Placement participants to receive a free option on a 1-for-2 basis, at a strike price of $0.35, with a one-year term.
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The Company will seek to have the options listed on ASX and approval for Director participation at EGM
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Funds to go towards drilling of the Mukuyu-1 well, to be undertaken in Jul – Aug CY22, with drill results to follow
Invictus Energy Limited ("Invictus" or "the Company"), is pleased to announce a private placement to raise $12.0m at $0.20 per share.
Capital Raising
Private Placement
The company has received firm commitments from sophisticated and institutional investors to raise $12.0m (before costs) by way of a private placement (“Placement”).
Under the Placement, Invictus will issue 60,026,165 new fully paid ordinary shares (“New Shares”) at an issue price of $0.20 per New Share, which represents a 27.3% discount to the Company’s share price on 18 May 2022, the last trading date before the Placement, and a 9.5% discount to the five-day volume weighted average price (“VWAP”) prior to that date.
The Placement saw participation from multiple new and existing institutional investors ahead of the Company’s upcoming drilling campaign at its 80 per cent owned and operated Cabora Bassa Project in Zimbabwe and was strongly supported with demand significantly exceeding shares available.
The first well in the campaign will target the Mukuyu prospect, which has been independently estimated to contain 8.2 Tcf + 247 million barrels of conventional gas-condensate (gross mean unrisked - see Independent Prospective Resource Estimate on 1 July 2019 and[#] Cautionary
ABOUT INVICTUS ENERGY
Invictus Energy Ltd is an independent oil and gas exploration company focused on high impact energy resources in sub-Saharan Africa. Our asset portfolio consists of a highly prospective 250,000 acres within the Cabora Bassa Basin in Zimbabwe. Special Grant 4571 contains the world class multi-TCF Mukuyu (Muzarabani) and Msasa conventional gas-condensate
BOARD & MANAGEMENT
Dr Stuart Lake Non-executive Chairman
Gabriel Chiappini Non-Executive Director & Company Secretary
Joe Mutizwa Scott Macmillan Non-Executive & Managing Director Deputy Chairman
www.invictusenergy.com
ASX Announcement
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Statement on Prospective Resources).
Use of Funds
The proceeds from the Placement will be used to fund the upcoming Mukuyu-1 drilling program:
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Mukuyu-1 drilling - $9.0m
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Working Capital - $2.3m
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Capital raising fees - $0.7m
The Company is continuing to progress multiple bids from potential farm-in partners. As part of a final farm-in agreement the Company anticipates having a significant portion of the drilling program funded by a farm-in partner(s).
Managing Director Scott Macmillan commented
“We are pleased to welcome new institutional investors onto our share register at an exciting time for the Company as we prepare to embark on our maiden drilling campaign in Zimbabwe.
“I would also like to thank existing shareholders that participated in the Placement for their continued support, including the Mangwana Opportunities Fund who add to their significant local-ownership of the company, and multiple Australian and international institutional investors who continue to show support for our Cabora Bassa project.
“Through the completion of this capital raise, in conjunction with our existing cash balance and additional funds delivered via the exercise of in-the-money options, the Company is well funded for the Mukuyu-1 well.
“We also continue to progress bids received from multiple potential farm-in partners and will provide a further update on the farm-in process in due course.
“We have a number of catalysts in the lead up to the basin opening drilling campaign including an update to the prospect and lead inventory encompassing the expanded SG 4571 licence area, selection of the 2[nd] well location to follow on from Mukuyu-1, and the mobilisation of the Exalo 202 drilling rig.
“Drilling of the Mukuyu-1 well, which will test Africa’s largest undrilled onshore oil and gas prospect, remains on track to commence in July.”
Placement details and timetable
The Placement shares of 60,026,165 are to be issued under the Company’s placement capacity
Invictus Energy Limited ABN 21 150 956 773
L1 10 Outram Street, West Perth, WA 6005 Australia T: +61 8 6102 5055 E: [email protected]
www.invictusenergy.com
ASX Announcement
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pursuant to ASX Listing Rule 7.1A. The Placement options are to be issued subject to receipt of shareholder approval.
The indicative timetable is as follows:
| Indicative Timetable | 2022 |
| Placement | |
| Settlement | Friday, 27 May |
| Allotment of new shares | Monday, 30 May |
| EGM approving issue of Options & Director Participation | Monday, 30 June |
| Allotment of Options | Wednesday, 7 July |
The Placement shares of 60,026,165 are to be issued under the Company’s placement capacity pursuant to ASX Listing Rule 7.1A. The Placement options are to be issued subject to receipt of shareholder approval.
The Company will also seek approval at the EGM for Non-Executive Director and Deputy Chairman Mr. Joe Mutizwa to participate in the placement on the same terms.
PAC Partners acted as lead manager to the placement and will be paid a fee of 6% for the placement funds received. PAC Partners to receive lead manager options on a ratio of 1-for-8, with an exercise price of $0.35, with 1-year expiry period. PAC Partners options will be issued subject to EGM approval.
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Approved for release by the Board
Questions and enquiries
Investors
Scott Macmillan
MANAGING DIRECTOR
Media
Josh Nyman
SPOKE CORPORATE
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P. +61 (08) 6102 5055 P. +61 413 243 440
Invictus Energy Limited ABN 21 150 956 773
L1 10 Outram Street, West Perth, WA 6005 Australia T: +61 8 6102 5055 E: [email protected]
www.invictusenergy.com
ASX Announcement
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About Invictus Energy Ltd (ASX: IVZ)
Invictus Energy Ltd is an independent upstream oil and gas company listed on the Australian Securities Exchange (ASX: IVZ). The Company is headquartered in Perth, Australia and has offices in Harare, Zimbabwe. Invictus is opening one of the last untested large frontier rift basins in onshore Africa – the Cabora Bassa Basin – in northern Zimbabwe through a high impact exploration program.
The Company’s principal asset is SG 4571 located in the Cabora Bassa Basin in Zimbabwe which contains the world class Mukuyu (Muzarabani) prospect – the largest undrilled prospect onshore Africa independently estimated to contain 9.25 Tcf and 248 million barrels of conventional gas condensate (gross mean unrisked basis).
Invictus Energy is committed to operating in a safe, ethical and responsible manner, respecting the environment, our staff, contractors and the communities in which we work
#Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons. Prospective Resource assessments in this release were estimated using probabilistic methods in accordance with SPEPRMS standards.
Invictus Energy Limited ABN 21 150 956 773
L1 10 Outram Street, West Perth, WA 6005 Australia T: +61 8 6102 5055 E: [email protected]
www.invictusenergy.com