By Stanley James
The Australian firm exploring for oil and gas in Muzarabani, Invictus Energy has raised an additional US$5,7 million as it forges ahead with sinking the first ever petroleum wells in Zimbabwe.
Invictus Energy which has a controlling stake in the project was in the market during the past few weeks to mobilise further capital.
With the capital intensive but viable oil and gas discovery project in progress, the company announced that additional funding is important in complying with the set timelines.
Results released this Tuesday revealed shareholder commitment to the project with US$5,7 million having been raised through a private placement offer to shareholders.
The funds will be used in the exploration exercise and drilling among other oil and gas discovery processes.
Economic commentators are well versed with the importance of the drive to raise additional capital.
“It is a well-structured financing model that shows the extent to which the entire project is being done in line with efforts to ensure reality,” said an Economic Commentator Economic Commentator
“It means the shareholders are committed to the project as they continue to raise capital for a project that needs more or huge capital but it is a further step in the right direction,” added a Business Consultant Mr Simbarashe Hamudi.
Other expected benefits from the oil and gas discovery in Zimbabwe include electricity generation, production of liquid petroleum, liquefied petroleum gas, fertiliser production and petrochemicals.