Invictus Energy, which is exploring for oil and gas in Muzarabani, has received firm commitments from investors to raise US$10,48 million ($8m Australian dollars), which the firm requires to fund exploration.
The oil and gas exploration junior said the resources will be raised through a share placement to new and existing institutional as well as sophisticated investors.
Invictus has already spent more than US$3.5 million in processing secondary data collected in the early 1990s by global oil giant Mobil and the research findings support huge potential for oil and gas.
The funding will be applied towards seisimic acquisition campaign this year and ordering of long lead equipment for the test well drilling, which is scheduled for October.
Invictus has since undertaken detailed traversing and mapping across the prospective area, identifying the optimal acquisition routes.
“Invictus received strong interest and support from both new institutional investors and existing shareholders, PAC Partners acted as lead manager to the Placement,” Invictus said.
Under the placement Invictus will issue 25 058198 new fully paid ordinary shares under the company’s remaining ASX LR-7.1 capacity.
The company will also issue 47 669 075 new shares under the company’s additional ASX LR-7.1A placement capacity, for a total of 72 727 273 New Shares, at an issue price of $0.11 per share.
The placement price of A$0.11 per share represents a 21.4 percent discount to the last traded price of $0.14 per share on 19 March 2021, being the last trading date before the placement and a 10 percent discount to the 15-day VWAP prior to that date.