A well casing is a lining that is installed in an oil well once it is drilled and surrounds the well entirely. Typically, the casing is hollow steel pipe that lines the inside of the wellbore.
The casings are used to support the oil or gas wells, as the raw sides of the well would collapse in without the support rendered by these key equipment.
A wellhead is the component at the surface of an oil or gas well that provides the structural and pressure-containing interface for the drilling and production equipment.
Long lead items are those components of a system or piece of equipment for which the times to design and fabricate are the longest, and therefore, to which an early commitment of funds may be desirable in order to meet the earliest possible date of system completion.
The latest announcement comes days after the Australian firm announced plans to raise
The company also said it had completed an extensive tendering exercise for the integrated well services contract including cementing, directional drilling, logging. The formal award of the contract is expected shortly.
"We are very pleased with the way the drilling programme is coming together with Invictus securing the wellheads and casing long lead items for a high impact 2-well drilling programme," said managing director
"We are now finalising the well services contract award and working to execute the binding rig agreement with Exalo for the #202 drilling rig.
"Invictus remains on track for the upcoming drilling campaign to commence in
Invictus has registered significant milestones in the exploration for and development of the Muzarabani oil and gas project, including completion of a seismic (subsurface data gathering) study and conclusion of drilling agreement with a British company.
The company, which expects that its recently concluded 2D seismic data will help refine the location and path of the planned Mzarabani-1 gas exploration that will test the potential of the Cabora Bassa project (Muzarabani), has also secured drilling for the project.
Official data shows that the Muzarabani prospect has been independently assessed to host prospective resources of about 9,25 trillion cubic feet of gas and 294 million barrels of condensate, essentially a light oil.
Invictus last year signed a petroleum exploration development and production agreement (PEDPA) with the Government, which spells out the rights and obligations of each party through the development phase of the project.
In terms of the fundraising, the
"As announced on
"We have a busy (first) half of 2022 planned with finalisation of our data processing for our seismic survey, update of our prospect and lead inventory, conclusion of our farm-out process and securing long lead items as we embark on our planned 2-well drilling campaign of our world class asset including the Muzarabani-1 well which will be one of the largest conventional targets drilled globally in 2022,"
Essentially, the funding enables Invictus to finance critical programmes ahead of planned exploration drilling of two oil and gas wells in Muzarabani, which the company has said is scheduled for the first half of next year.
Under the planned placement,
Proceeds from the placement will be used to fund the rig mobilisation fee, purchase of long lead items for the planned second-well drilling programme and finalisation of the data processing of its Muzarabani seismic survey.
A share placing (placement) is when new equity shares are issued to individual investors, corporate entities, or small groups of investors for capital.
This increases the amount of shares in issue and dilutes existing shareholders.
In concert with the placement, Invictus said it would offer all eligible shareholders a share purchase plan (SPP) to raise up to
All eligible shareholders will have the opportunity to apply for up to
A share purchase plan (SPP) is a form of capital raising by a listed company that offers shareholders the opportunity to apply for new additional shares.
Regulations limit the maximum application per shareholder to
Typically, an SPP is conducted at a discounted price to the current listed price of the stock to encourage shareholders to purchase more shares.
"The issue price under the SPP of
In the event of over-subscriptions, the company said its directors may also, in their absolute discretion, decide to increase share purchase plan acceptances by a further
Proceeds from the SPP was to be allocated to further purchases of long lead items for the planned 2-well drilling campaign and for general working capital.
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