Invictus Energy says it is on course to begin a seismic campaign in Muzarabani this quarter, after the Australia Stock Exchange listed firm successfully raised requisite capital funding.
The company said in an update this week it had recently raised A$8 million (US$6,2 million) for the seismic campaign and mobilisation of long haul equipment ahead of opening basin drilling.
Proceeds from the capital raise will be applied towards the firm's special grant (SG) 4571 seismic campaign and procurement of drilling equipment for the first phase of the oil/gas test well.
Additionally, the money will fund the basis of well design, drilling rig tender preparation and general working capital as the company prepares to make the first ever oil/gas test well in Zimbabwe.
Seismic acquisition is a process of gathering subsurface vibrations during oil and gas development and used to determine location with higher chances of success for discovery of minerals.
Invictus has already recorded key milestones on the Muzarabani oil and gas project, including the conclusion of a petroleum exploration and production agreement with the Government.
The agreement allows the company to negotiate a 25-year production licence following exploration, which should be finished by end this year but is scheduled to begin around October.
"The completion of a strongly supported capital raise has put the company in an excellent position to complete our upcoming seismic acquisition programme, which will commence in Q2 and then lead to an eagerly awaited high impact basis opening drilling campaign," Invictus said.
Invictus said the agreement with Government puts in place a framework to rapidly develop the project on exploration success and a 25-year production licence on oil or gas commercial discovery.
The agreement provides the framework for fast development of the Muzarabani prospect through the exploration, appraisal, development phases and rights and the rights obligations of each part.
The company believes that the completion of the seismic campaign will unlock additional value for the company and delineate the optional drilling location to test the world class Muzarabani prospect.