QUARTERLY HIGHLIGHTS
Operational
- Final Petroleum Production Sharing Agreement (PPSA) review completed, and finalisation in progress in preparation for execution.
- 3D seismic and additional appraisal drilling and testing at Mukuyu gas field planned.
- Next exploration drilling campaign to focus on the Musuma prospect to test the Dande play in eastern Cabora Bassa.
- Farm out process progressing, with discussions advancing with a number of prospective partners.
Corporate
- Tranche 2 of US$10 million Zimbabwe strategic capital raise completed at AU$0.10 per share with additional US$2 million of oversubscriptions accepted.
- Company’s AGM held, with all resolutions passed.
Operational update
Petroleum Production Sharing Agreement (PPSA)
During the quarter, a final independent review of the Petroleum Production Sharing Agreement (PPSA) was completed by external European legal counsel, marking a significant milestone in the development of the Company’s exploration and production activities (refer ASX announcement 29 November 2024).
The PPSA is designed to ensure equitable sharing of value generated from the Cabora Bassa Project between the Government, Invictus and its partners and will also provide a robust governing framework for Zimbabwe’s oil and gas sector.
The Mutapa Investment Fund of Zimbabwe (“Mutapa”) – which committed to underwriting US$5 million of a $10 million capital raise in mid-2024 – has been assigned the beneficiary of the PPSA product/profit share and equity holder, on behalf of the Republic of Zimbabwe.
Finalisation of the PPSA is in progress in preparation for execution.
Farmout and strategic partner options progressing
During the quarter, Invictus continued discussions with a range of potential farm out and strategic partners to provide funding and support for the Cabora Bassa Project and forward work programs.
Exploration and Appraisal Program
In Q3 2024, eight new high potential prospects were defined in the eastern Cabora Bassa basin totalling 2.9 Tcf gas and 184 MMbbl condensate, highlighting significant upside potential for the Project (refer ASX announcement on 3 September 2024).
The Company’s next drilling campaign will focus on exploring the Musuma prospect to test the Dande play in eastern Cabora Bassa. This prospect has interpreted seismic amplitude support and is estimated to have a recoverable prospective resource of more than 1 Tcf and 73 million barrels of condensate.
Further 3D seismic and appraisal drilling and well testing at the Mukuyu Gas Field is planned to determine future development well locations and prepare for the early commercialisation pilot gas-topower project for the Eureka Gold Mine (refer ASX announcement on 23 April 2024).
The Company continues to conduct further evaluation of the oil-prone Basin Margin play to select additional prospects for future drilling.
Tranche 2 of strategic Zimbabwe investment completed
During the quarter, the second tranche of the US$10 million Institutional Placement managed by Mangwana Capital (Private) Limited was completed (refer ASX announcement on 31 December 2024).
Due to strong demand, the Company also accepted an additional US$2 million in oversubscriptions on the same terms.
Tranche one of the Placement was partially underwritten by Mutapa, which was completed in August 2024 (refer ASX Announcement on 1 August 2024).
This strategic investment is historic for both Invictus and investors in Zimbabwe, who can now hold and trade securities in the Company through its secondary listing on the Victoria Falls Stock Exchange.
AGM meeting and results
On 29 November 2024 the Company held its Annual General Meeting (AGM) in Perth, Western Australia. All resolutions put to the AGM were approved.
Source: Invictus Energy
