Zimbabwe oil explorer may sell stake in gas project

Invictus Energy may sell a stake in its Zimbabwean oil and gas project if its appraisal drilling campaign confirms commercially viable discoveries, managing director Scott Macmillan says.

Invictus last month said a mud gas analysis from its Mukuyu-1 exploration well drilled last year confirmed the presence of light oil, gas condensate and helium at the Cabora Bassa project in northern Zimbabwe.

Invictus will start drilling a second well, Mukuyu-2, during the third quarter of this year. If this appraisal well confirms that the discovery can be exploited profitably, the company plans to bring new partners into the project.

“Invictus will be seeking to divest a portion of our 80% equity in the project and bring in a strategic industry partner to fund our share of the development as is common in the industry,” Macmillan says.

Invictus has recently raised US$24.24 million through a share purchase plan and private placement to fund the second phase of its Cabora Bassa exploration and appraisal campaign.

Macmillan said Invictus would consider listing on Zimbabwe’s United States dollar-only Victoria Falls Stock Exchange(VFEX).

“It is a logical step for Invictus to have a listing on the VFEX with our presence in the country and we will seek to complete a listing when the timing is right for us to do so,” Macmillan said.

One-Gas Resources, a Zimbabwean company, owns 20% of the project. Mangwana Opportunities, a fund that includes a group of Zimbabwean pension funds and is run by Mangwana Capital, is among the shareholders in Invictus Energy.

VFEX has been a route to raise capital for a resource company before. Gold producer Caledonia has raised funding on the exchange, while South African miner Tharisa’s got US$32 million from a bond issue for its Karo platinum mining project, the biggest such capital raise on VFEX so far.- NewZWire

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