The Australian Stock Exchange (ASX) has asked Zimbabwe’s oil and gas exploration junior, Invictus Energy, for an explanation over a sudden rise in its share price and a sharp increase in volumes of shares traded in a single session last week.
Chris Hesford, of ASX’s compliance division, wrote to Invictus Energy, which explores for oil and gas in Muzarabani, demanding an explanation if the company has information that may have triggered a sudden interest in the shares. of the company.
“If the answer to question 1 is ‘yes’. (a) Does IVZ rely on Listing Rule 3.1A to not disclose this information under Listing Rule 3.1?
âPlease note that recent trading in IVZ securities suggests to ASX that this information may have ceased to be confidential and therefore IVZ may no longer be able to rely on the 3.1A listing rule.
âTherefore, if the answer to this question is ‘yes’, you must contact us (ASX) immediately to discuss the situation.
âB) Can an announcement be made immediately? Please note that if the answer to this question is “no”, you must contact us immediately to discuss the request for a stop trading.
âC) If an announcement cannot be made immediately, why not and when is an announcement expected to be made?
âIf the answer to question 1 is ‘no’, is there another explanation that IVZ could have for the recent transactions in its securities? Asks Mr. Herford.
Shares of Invictus fell from 0.088 to 0.145 per share on Wednesday, March 10, 2021, prompting regulators to ask the exploration company to indicate whether it was aware of any information behind the frantic interest and soaring prices.
“Is IVZ (Invictus Zimbabwe) aware of any information about it which has not been made known to the market and which, if known to some in the market, could explain the recent trading of its securities?” asked Mr. Hesford in his letter.
Invictus said it ignored any information that may have sparked market interest in its shares, except for disclosures it has already made to regulators regarding ongoing discussions with the government.
“No, however, the company in its recent quarterly R activity report for December 2020 filed with the ASX on January 29, 2021, confirmed that the review of the oil exploration development and production agreement ( PEDPA) had been completed by the Government of Zimbabwe Interministerial Committee and was approved.
âThe PEDPA provides the framework for the progression of the Cabora Bassa project through the exploration, appraisal, development and production phases and the obligations and rights of each party throughout the project life cycle. The company is awaiting execution of the agreement, âsaid Invictus.
Invictus also said he was not aware of any other information that could have excited the market, except for recent media reports in which Zimbabwe’s Minister of Mines and Mining Development Winston Chitando said confirmed the position of PEDPA.
“Yes, the agreement (PEDPA) is being finalized and it will be signed before the end of the month,” said the Minister of Mines.
So far, it’s been a big year for the Australian Invictus Energy share price, which has doubled since the start of 2021. Just three trading days before the ASX closes for 2020, Invictus Energy also announced have received a firm offer for Geo Associates, 80% shareholder of Invictus, Cabora Bassa project (Muzarabani).
Invictus has since undertaken detailed traversal and mapping of the region, identifying optimal acquisition routes. He said he plans to carry out further testing at the end of the rainy season (October to April).
The company also announced its intention to begin drilling on the Cabora Bassa in October this year.