Invictus Energy Limited (ASX:IVZ) is set to commence a field reconnaissance program in the Cabora Bassa Basin in the next fortnight, and the company has completed a further placement for the equivalent of A$220,000 at a share price of $0.066 with the Mangwana Opportunities Fund under a second tranche of the equity funding agreement as announced on April 30, 2020.
The Cabora Bassa Project encompasses the Mzarabani Prospect, a multi-TCF and liquids rich conventional gas condensate target, which is potentially the largest, undrilled seismically defined structure onshore Africa.
The prospect is defined by a robust dataset acquired by Mobil in the early 1990s that includes seismic, gravity, aeromagnetic and geochemical data.
Following the approval of the Environmental Management Plan, easing of COVID-19 related restrictions and the completion of the final cultural ceremonies in the Muzarabani and Mbire Districts, the company will commence field operations in the Cabora Bassa Basin.
The licence area (SG 4571) covering 250,000 acres was granted in August 2017.
Commenting on significance of the upcoming exploration program and the encouraging premium implied in terms of the placement price, managing director Scott Macmillan said, “We are extremely pleased to commence our activity on the ground in the Cabora Bassa Project having now received all of the necessary approvals and restrictions in the country being eased.
‘’The company has a window of opportunity to carry out a reconnaissance program prior to the onset of the rainy season so that we can map out the routes for the planned seismic acquisition campaign next year.
‘’This exercise will enable us to map out the optimal route ahead of the survey which will reduce the acquisition time and maximise efficiency of the survey.
‘’The company is also pleased to have completed a second tranche of funding from the Mangwana Opportunities Fund at a premium of 10% to the previous closing share price.
‘’The funds will be used for the upcoming field program and general working capital.”
Shares surge ahead of exploration program
As the much anticipated exploration program has drawn closer, shares in Invictus have surged, more than doubling in the last two months.
The reconnaissance program and baseline survey consist of the traversing of the proposed infill seismic lines for a planned acquisition campaign in the 2021 dry season.
The program will capture details such as topography, existing access roads, drainage, vegetation cover, soil types, rock exposures, sampling of any natural oil and gas seeps, areas of development (constructions and cultivation), plus any sites of cultural, religious or historic importance.
The duration of the program is expected to be approximately 30 days and is in the final stages of planning and will be completed before the wet season.