US$32m raised: A closer look at Invictus Energy's ...

US$32m raised: A closer look at Invictus Energy's strategic plans

Nyashadzashe Ndoro

Chief Reporter

Australian energy firm Invictus Energy Limited has reported a transformative 2024 financial year, marking significant progress in its transition from exploration to development in Zimbabwe, with the company successfully raising over US$32 million to fund the Mukuyu-2 drilling campaign.

The company's annual report reveals a milestone-filled year, paving the way for Invictus to become a major energy producer in the region.

At the forefront of Invictus' success is the Mukuyu-2 gas-condensate discovery, confirming the vast resource potential of the Cabora Bassa Basin. This discovery has opened up a new energy frontier in Zimbabwe, positioning Invictus as a key player in the country's energy security.

Invictus has secured Gas Sale Memorandums of Understanding with prominent Zimbabwean entities, including Tatanga Energy, Sable Chemicals, and Eureka Gold Mine. These agreements provide a commercial foundation for domestic gas sales, underscoring Invictus' commitment to supplying energy to the rapidly expanding southern African market.

The renewal of Invictus' SG 4571 exploration license enables continued exploration in the Cabora Bassa Basin, where Invictus has acquired 1,400 kilometers of 2D seismic data and drilled two wildcat wells.

Strategic investment from the Mutapa Investment Fund, Zimbabwe's Sovereign Wealth Fund, demonstrates national recognition of Invictus' projects' potential. MIF has contributed US$5 million to Invictus' US$10 million private placement, with Mangwana Capital injecting an additional US$5 million. This investment solidifies Invictus' partnership with the Zimbabwean government, which will hold a 10% back-in-right within six months of a final investment decision.

Invictus has also listed on the Victoria Falls Stock Exchange, broadening its local investor base and offering Zimbabweans an opportunity to invest in the company. Managing Director Scott Macmillan cited the importance of local participation, stating, "The secondary listing on VFEX will facilitate liquidity for the local demand that exists in Zimbabwe."

The company's exploration portfolio has been strengthened by the CB23 seismic infill survey's results, uncovering a new play with eight drill-ready prospects. An exploration well at Musuma is planned for 2025, further bolstering Invictus' development efforts.

Beyond its core business, Invictus has undertaken local initiatives, including infrastructure upgrades, community development projects, and employment opportunities. The company's commitment to corporate social responsibility has fostered positive relationships with local communities.

Despite challenging market conditions, Invictus raised over US$32 million through private placements and rights issues. This consisted of a US$15 million private placement completed in August 2023 and a further US$16.5 million private placement and rights issue across the end of CY2023 and early 2024.

The company seeks non-dilutionary funding for project development, demonstrating its financial prudence.

Invictus' transition from explorer to developer is underway, with the company advancing commercialisation opportunities, conducting field appraisal activities, and planning further drilling. The Cabora Bassa area, known for its promising geology and rift basin setting, has garnered significant interest for its natural energy resources.

As Invictus positions itself to supply energy to southern Africa, the company's discoveries and strategic investments have cemented its role as a major player in Zimbabwe's energy landscape.

"As we look ahead, we remain confident in our ability to deliver on our vision, and we are excited by the tremendous opportunities that lay before us. We are entering the next chapter of growth, and we are committed to realising the full potential of the Cabora Bassa Basin for the benefit of our shareholders, Zimbabwe, and the region," Macmillan states.