The Invictus Energy Ltd (ASX: IVZ) share price has had a stunning day today. At the time of writing, Invictus shares are up 23.33% to 18 cents a share after closing at 16 cents a share yesterday.
Today's share price appreciation is just the latest chapter in what has been a great year to own Invictus Energy shares. Twelve months ago, this company was sitting at a price of just 2 cents a share. That means that Invictus is now up 825% over the past year. Since 27 March 2020, this prospective oil driller has risen an incredible 1,750%. Even in 2021 so far, investors have enjoyed gains of 260%, including 50% since 30 March.
So why are Invictus shares pushing dramatically higher today?
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Conviction for Invictus shares
Well, there is no major news or announcements out today that would be directly affecting Invictus shares. However, a lot has been happening at this company lately.
Late last month, the company completed a share placement program, which raised $8 million from the issuance of just over 25 million shares at a price of 11 cents each. Then, on 29 March, Invictus announced that it had signed a petroleum exploration development and production agreement with the government of Zimbabwe for 25 years. This agreement will allow the Cabora Bassa project, of which Invictus has an 80% ownership, to proceed. Invictus' license covers 250,000 acres in the Cabroa Bassa Basin in Northern Zimbabwe. The company states that it holds "potentially the largest, seismically defined, undrilled structure in onshore Africa".
We haven't had any substantial news out of the company since, apart from some routine paperwork announcements. However, investors seem to have been growing more confident in Invictus with each passing day.
Another factor might be at work as well. The breakthrough for Invictus on its Cabora Bassa project could not have come at a better time. Over the past 2-3 weeks, global oil prices have risen considerably. According to Bloomberg, it was only back on 23 March that Brent crude was asking just over US$60 a barrel. Today, it's commanding US$66.66 a barrel. There's little doubt investors have failed to notice this in recent weeks, judging by the Invictus share price.
At the current market valuation, Invictus Energy has a market capitalisation of $99.95 million (so close to the ton).
