Why is the Invictus Energy (ASX:IVZ) share price up 23% today?

The Invictus Energy Ltd (ASX: IVZ) share price is having a top day today, rising mroe than 23% to 18 cents a share. Here's why

| More on:
hand on touch screen lit up by a share price chart moving higher

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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?

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).

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Female miner smiling at a mine site.
Resources Shares

Up 60% this year, this ASX 200 mining stock just smashed production records

Production surge headlines quarterly results.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Resources Shares

After lifting its price target, Macquarie now expects 36% upside from this ASX mining stock

The precious metals producer released better-than-expected production guidance.

Read more »

A miner in a hardhat and high visibility clothing makes a thumbs up symbol.
Resources Shares

4 reasons to buy Rio Tinto shares today

A leading expert forecasts strong growth potential for Rio Tinto shares.

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Why Macquarie expects this ASX All Ords copper stock could surge 38%

With costs coming in below expectations, this ASX All Ords copper stock could rocket higher over the coming months.

Read more »

Iron ore price Vale dam collapse ASX shares iron ore, iron ore australia, iron ore price, commodity price,
Resources Shares

Major miners up as China announces new mega project

Can a new mega-dam absorb iron ore oversupply?

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Broker Notes

Leading broker has just downgraded BHP shares. Is it time to sell?

Macquarie sees little upside. But why?

Read more »

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads some news.
Resources Shares

3 reasons why the BHP share price could be a buy

Here are my optimistic thoughts on BHP.

Read more »

mining asx shares represented by miner writing report on clipboard
Resources Shares

This ASX 200 miner is ramping up copper output as prices reach all-time highs

Copper production leads quarterly update.

Read more »