30 Sept 2022annual report● Neutral
Annual report for year ended 30 June 2022. The text provided is truncated and contains only the contents page, directory and start of the operations review, so no financial figures can be reported.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
26 Sept 2022drilling spud▲ GoodMajor
Mukuyu-1 spudded on 24 September (local time), the first well of the two-well campaign, targeting 20 Tcf + 845 mmbbl. Planned depth is 3,500m, with drilling and evaluation expected to take 50-60 days. Baobab-1 follows. This ends the long wait for drilling.
19 Sept 2022asset acquisition disposition▲ GoodMajor
The Zimbabwe Government Gazette publishes the assignment of EPO 1848 and 1849 exploration rights to Invictus's 80% subsidiary, valid three years to 15 September 2025. This completes the licence expansion to about 360,000 ha. Mukuyu-1 is still awaiting rig acceptance.
2 Sept 2022drilling scheduled▲ Good
Invictus maps multiple drill-ready prospects in the Basin Margin play across the expanded licence area, plus further large leads on trend with Mukuyu. Mukuyu-1 is due to spud in early September, followed by Baobab-1. An independent resource estimate for the Basin Margin is still being prepared.
2 Sept 2022investor presentation● Neutral
September 2022 presentation for the two-well campaign repeats known facts: 360,000 ha, 20 Tcf + 845 mmbbl at Mukuyu, drilling from September. It states market cap of $222.1m ($0.255) and net cash of A$32.8m after the raise.
31 Aug 2022capital raising announcement● NeutralMajor
Raises $25m via placement of 108,695,652 shares at $0.23 (25.8% discount), with free 1-for-1 $0.40 five-year options. Invictus will sole-fund Mukuyu-1 ($10.0m) and Baobab-1 ($13.5m) rather than farm out, after weighing multiple farm-in bids. Exploration rights approved for gazette.
What it means for a shareholder
109m new shares at A$0.230 to raise about A$25.0m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (4,348 at the issue price), your slice goes from 0.000588% to 0.000513% of the company. To keep it you'd need 639 more shares - about A$147 at the issue price.
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31 Aug 2022listing compliance notice● Neutral
ASX lifts the suspension of Invictus shares immediately after release of the capital raising and EPO 1848/1849 gazette approval announcement. Administrative notice only.
29 Aug 2022listing compliance notice● Neutral
Shares suspended at the company's request because the Zimbabwe gazette notice for EPO 1848/1849 was not published, which the text attributes to a minor administration issue. A capital raise was also completed during the earlier trading halt. Update promised by 31 August.
19 Aug 2022security holder rights change● Neutral
Invictus says the free 1-for-2 placement options ($0.35, one year) were issued unlisted because the meeting notice wrongly described them as unlisted. It is seeking an ASX waiver to quote them without another vote, otherwise it will call a shareholder meeting.
17 Aug 2022material agreement▲ GoodMajor
Assignment agreement with the Sovereign Wealth Fund gives Invictus exploration rights over EPOs 1848 and 1849, bringing the licences to about 360,000 ha. This replaces the earlier 709,300 ha plan, with non-prospective areas dropped. Baobab-1 is confirmed as the second well; the fund keeps a 10% back-in right.
3 Aug 2022material agreement▲ GoodMajor
Invictus wins a 30-year contract with Zimbabwe's Forestry Commission for three REDD+ carbon offset projects covering 301,565 ha of forest. It aims to offset Cabora Bassa Scope 1 and 2 emissions, with credits expected in about 12 months. A new strategic direction beyond drilling, and credit volumes remain subject to accreditation.
26 July 2022regulatory community update▲ Good
Zimbabwe's environmental agency renewed the Environmental Impact Assessment for SG 4571 to July 2023. The company says this concludes the permitting requirements for seismic and exploration drilling. It also reports a community water program and a CSR award.
25 July 2022regulatory community update▲ Good
Invictus has secured DTC eligibility for its OTCQB-traded shares (IVCTF, listed since December 2021), widening the range of North American brokers that can trade them. Mukuyu-1 is said to be on track to spud next month.
5 July 2022resource reserve update▲ GoodMajor
ERCE lifts Mukuyu's gross mean unrisked prospective resource to 20 Tcf + 845 million barrels (about 4.3bn boe), 2.7 times the 2019 Getech estimate of 8.2 Tcf + 247 mmbbl. Invictus's 80% share is 16 Tcf + 676 mmbbl. Rig customs delays push drilling to August.
8 June 2022drilling progress report▲ Good
Exalo Rig 202 has started moving from Tanzania, arriving over June. The Mukuyu-1 wellpad is nearly complete, and long-lead casing is arriving in Harare. Pre-gazettal administration for the sevenfold licence expansion is finished, awaiting publication; the second well details follow gazettal.
26 May 2022contract award▲ GoodMajor
Binding integrated well services contract signed with Baker Hughes, converting the February letter of intent and covering cementing, mudlogging, wireline and wellhead supply. Rig mobilisation starts early June and Mukuyu-1 spud is anticipated in July. The updated resource estimate is still awaited.
23 May 2022capital raising announcement● NeutralMajor
Raises $12.0m via a placement of 60,026,165 shares at $0.20, a 27.3% discount to the 18 May price. Investors get free 1-for-2 options at $0.35 (one year), subject to shareholder approval. Funds go mainly to Mukuyu-1 ($9.0m); farm-in bids are still being progressed.
What it means for a shareholder
60.0m new shares at A$0.200 to raise about A$12.0m. That's 7.5% dilution: every existing holder's slice gets 7.5% smaller. If you held A$1,000 of shares (5,000 at the issue price), your slice goes from 0.000676% to 0.000626% of the company. To keep it you'd need 406 more shares - about A$81 at the issue price.
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12 May 2022drilling result▲ Good
Further seismic studies suggest the shallow Horizon 200 target may hold stacked gas zones 40-80m thick, plus a flat spot in the deeper Horizon 500 target. A diverter system is being added to the Mukuyu-1 drilling plan. These are indicators only, uncalibrated by any well.
12 May 2022investor presentation● Neutral
Invitation to a 13 May webinar where the Managing Director will brief investors on the CB21 seismic results announced the same day. It says Mukuyu drilling is scheduled to begin in July 2022, later than the June timing given earlier.
3 May 2022admin correction● Neutral
Corrects errors in the 28 April cash flow report: total available funding is $7,768k, not $1,626k, and estimated funding is 4.7 quarters, not 0.3. Corrected report re-lodged. This is an administrative correction.
27 Apr 2022investor presentation● Neutral
April 2022 investor presentation restating known points: 709,300 hectare licence awaiting gazettal, 9.25 Tcf + 298 mmbbl resource, net cash $7.35m and a two-well campaign. Market cap is shown as $130.1m. It gives a July 2022 campaign start, later than the June stated elsewhere.
27 Apr 2022farm in farm out agreement▲ Good
Three farm-in offers received for the Cabora Bassa Project, including an updated Cluff bid, with other parties still doing due diligence. No preferred bidder yet. Mukuyu-1 wellpad construction has started, which is a step toward the June drilling.
7 Apr 2022drilling result▲ GoodMajor
Seismic interpretation largely complete. A substantial new shallow target (Post Dande, Horizon 200) shows amplitude anomalies fitting the structure. The prospect is renamed Mukuyu (formerly Muzarabani) and a Mukuyu-1 well path is set. The data are uncalibrated, as no well has yet been drilled in the basin.
31 Mar 2022farm in farm out agreement● Neutral
Cluff's farm-in option deadline extended from 31 March to 30 April 2022 so it can assess the enlarged licence area and finalise funding. Invictus says it is in active talks with multiple other parties. Rig arrival now expected mid-June; Cluff still has not exercised.
28 Mar 2022material agreement▲ GoodMajor
Heads of Agreement with Zimbabwe's Sovereign Wealth Fund lifts SG 4571 from 100,000 to 709,300 hectares, covering the whole Cabora Bassa Basin. The fund gets a 10% back-in right after a positive development decision. Two wells are now committed; gazettal and the production sharing agreement are still pending.
14 Mar 2022half year report● Neutral
Half-year report to 31 December 2021 shows a net loss of $2,625,363, up from $993,755 a year earlier. It recaps the 864km seismic survey, the Cluff farm-in option (exercise by 31 March 2022) and the Exalo rig MOU. No new operational information.
10 Mar 2022contract award▲ GoodMajor
Binding contract signed with Exalo Drilling SA for its #202 rig to drill Muzarabani-1 (8.2 Tcf + 247 mmbbl target) plus an option for a second well, firming up the December MOU. Drilling is expected in June 2022. Barry Meikle appointed Country Manager.
28 Feb 2022drilling progress report▲ Good
Final processed seismic data received; interpretation under way, with multiple strong amplitude anomalies in Muzarabani and a potential flat spot in a new lead. These are possible hydrocarbon indicators, not confirmed. Two-well drilling still scheduled to start June 2022.
15 Feb 2022drilling scheduled▼ BadMajor
Exalo pushed rig mobilisation to May, so the first well spud slips from May to June 2022. The second-well option deadline is extended pending gazettal of the extended licence area. Muzarabani-1 location confirmed. A one-month delay to the earlier target.
11 Feb 2022contract award▲ GoodMajor
Baker Hughes awarded the integrated well services contract (cementing, directional drilling, logging, wellheads, project management) under a letter of intent; the full contract is expected in coming weeks. ERCE engaged to independently update prospective resources using the new seismic. Resolves the pending tender award.