HIGHLIGHTS
• Mutapa Investment Fund of Zimbabwe committed to underwriting US$5 million of
US$10 million strategic capital raise at an issue price of AU$0.10 per share
demonstrating long-term support for Cabora Bassa Project
• Petroleum Production Sharing Agreement to be implemented by Mutapa Investment
Fund on behalf of Republic of Zimbabwe
• Mukuyu well testing, and appraisal planning and preparation completed
• CB23 seismic data interpretation completed, leading to identification of three key
drill-ready prospects for future exploration well campaigns
• Mukuyu 3D seismic survey planning complete and ready to be rolled out
• Pilot gas-to-power MOU executed to supply energy to nearby Eureka Gold Mine
• Farm-out process to secure strategic partner progressing well
Invictus Energy Limited (“Invictus” or “the Company”), is pleased to provide an update on its
operational, corporate and financial performance for the quarter ended 30 June 2024.
Operational update
Well testing and appraisal activity
During the quarter the Company progressed a number of planning activities and negotiations
of services contracts as part of its appraisal of the Mukuyu gas-condensate field.
Well test design study for Mukuyu-2 aimed at defining optimal test parameters, to determine
long-lead equipment, a mobilisation plan and timing for the Mukuyu-2 well test.
In conjunction, the Company continued evaluating well services contract bids for the well
testing and future exploration and appraisal drilling campaigns to ensure the Company
secures services and ancilliary equipment on favourable and cost-effective terms.
Through this process to date, Invictus has been able to identify cost-saving measures up to
40% assocaited with the future delivery of drilling and well services.
This forms part of the overall de-risking strategy achieved though drilling basin-opening
Mukuyu wells and subsequent discoveries declared in December 2023.
CB23 seismic data interpretation completed
During the quarter Invictus completed interpretation of 425km of high-resolution data
acquired through its CB23 infill seismic survey carried out over EPOs 1848 and 1849.
Invictus has determined five exciting eastern leads on trend with the Mukuyu Gas Field and is
developing three in the Dande Formation – Musuma, Mopane and Mururo – into future drillready prospects (refer ASX announcement 6 May 2024)
Data and insights gathered from Mukuyu well studies continue to be integrated into the
wider exploration portfolio to inform future assessment of the lead inventory.
Mukuyu 3D seismic survey
The Mukuyu 3D seismic survey planning and preparation completed during the previous
quarter with the preferred contractor is ready to be rolled out during the upcoming quarter.
This 3D seismic data will assist delineating reservoir connectivity, fault block configuration,
resource volumes and future appraisal well locations.
Given the scale of the Mukuyu Gas Field, which has over 200km2 of structural closure, 3D
seismic will aid the selection of areas for focused appraisal drilling and early development.
Corporate update
Significant Zimbabwean investment backs Cabora Bassa development
Subsequent to quarter’s end, the Company was pleased to announce it secured significant
capital of up to US$10m through a Zimbabwe-based investment consortia (refer ASX
announcement 29 July 2024)
Among the consortia is Zimbabwe’s national sovereign wealth fund the Mutapa Investment
Fund, the Mangwana Opportunities Fund (“Mangwana”) and a range of long-term
Zimbabwean investment funds.
The consortia’s investment was led by Mangwana, a long-term strategic partner and
shareholder of Invictus, and represents real confidence within Zimbabwe in the Company and
the value the Cabora Bassa Project can potentially unlock for the nation.
Underlying securities will be issued to Zimbabwe investors through the Victoria Falls
Securities Exchange (“VFEX”) where they will be able to trade.
This limits impact on ASX security holders of Invictus while helping meet considerable
demand for securities and trading in Zimbabwe.
Funds raised will go towards the Mukuyu-2 well test and appraisal, purchase of long lead
items for exploration wells to test prospects in the Eastern Margin and Basin Margin plays,
and general working capital.
PPSA strengthened through Mutapa
Part of the strategic consortia investment, Mutapa Investment Fund also acts as the Republic
of Zimbabwe’s nominated participant in future development of the Cabora Bassa Project
through the Petroleum Production Sharing Agreement (“PPSA”).
The PPSA will provide a stable and transparent fiscal and legal framework to govern the
project and ensure fair and equitable sharing of the project’s revenue between Government,
Invictus and other strategic partners.
Cabora Bassa partnering interest remains strong
As a part of the Company’s phased plan to develop the resource base, Invictus is engaged in
discussions on multiple fronts to bring strategic partners into the Cabora Bassa Project.
Invictus is in active discussions with a range of upstream and field service companies offering
potential to partner in or finance future exploration, appraisal and development activity in the
Cabora Bassa.
Confidentiality agreements with regional development banks and upstream oil and gas
companies also continued through the quarter.
Commercialisation opportunities
As briefly referenced in the March Quarterley Activites Report, Invictus was pleased to ratify a
gas sales MOU with Dallaglio Investments Pvt Ltd (“Dallaglio”) and Himoinsa Southern Africa
Proprietary Limited (“Himoinsa”) for a proposed gas-to-power project to supply electricity to
the Eureka Gold Mine (“Eureka”) (refer ASX announcement 23 April 2024).
Eureka, owned and operated by Dallgalio, is one of the largest gold producing mines in
Zimbabwe and located only 50km from the Mukuyu-2 wellsite.
Himoinsa is a global leader in the manufacture of power generation sets, one of the largest
onsite power solutions providers in Africa, and provides power generation to the Eureka
Mine.
A feasibility study investigating optimal delivery of power options – covering both onsite
generation or wellsite generation and distrbution via existing grid infrastrucutre – continued
during the quarter in conjunction with well test design work and preparations to conduct an
Environmental Impact Assessment for the future gas to power projects.
The pilot project will provide near-term monetisation and proof-of-concept for future full
field development(s) and is expandable up to 50MW with intent to sell excess power into the
Southern Africa Power Pool (SAPP).
Transition to new share register
During the quarter Invictus switched its share register to Computershare Investor Services Pty
Limited effective from 17 June 2024 (refer ASX announcement 17 June 2024)