Why this ASX 200 mining share has jumped 33% in 2 weeks

The Invictus Energy Ltd (ASX: IVZ) share price has jumped 33% in the past two weeks.

Within that time, the miner kept investors up-to-date with operations at its African gas exploration project — including a date for on-site drilling commencement.

At market close on Friday, the Invictus Energy share price was up 3.23% at 16 cents.

So what’s been going on with this particular ASX 200 mining share? Let’s dive straight in…

Cabora Bassa contract awarded

On Friday, the oil and gas company announced it had awarded an “integrated well services” contract for its 80% owned and operated site in Zimbabwe’s Cabora Bassa Basin.

The contract went to Baker Hughes, which Invictus described as “one of the world’s leading oilfield service providers, operating in more than 120 countries worldwide”. The news appears to have been well received by investors, judging by the increase in the Invictus Energy share price.

The contractor will undertake tasks such as cementing, mud logging, and project management. It will work alongside Exalo Rig 202, which is also performing drilling work on the site.

With the first well “expected to spud” in the first half of this year, this contract puts Invictus “on track” to begin a 2-well drilling campaign by its intended deadline of May this year.

The Baker Hughes contract is expected to start within the next few weeks.

External contractors to assist site development

The miner has involved another external party, ERCE Equipoise, to digest and review the seismic data it collected late last year.

Managing director and CEO Scott Macmillan said the survey provided “greater insight into the subsurface and petroleum potential” of the site.

At the end of January, Invictus released its results for the December quarter. In it, the miner praised the recent share purchase plan (SPP) and capital raising for the Zimbabwe site. The Invictus Energy share price climbed 4.35% the following day.

Macmillan said the SPP allowed the company to “double its targeted raise” and would be used “to fund the rig mobilisation fee and long lead items”.

The company is in a strong position and is now firmly focused on the execution of the planned May drilling campaign.

Invictus share price snapshot

Over the last 12 months, the Invictus share price has increased by 107%.

This time last year, shares were trading around 8 cents. They hit their highest price of 21 cents in April.

At the end of December, the ASX 200 mining share saw a 26% jump coinciding with its SPP.

The company has a market capitalisation of $102.31 million and over 660 million shares issued.

The post Why this ASX 200 mining share has jumped 33% in 2 weeks appeared first on The Motley Fool Australia.

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Motley Fool contributor Alice de Bruin has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

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