Licence Extension and ESIA Approval Set Stage, But Musuma-1 Drilling Risks Loom

Licence Extension Secures Exploration Horizon

Invictus Energy Ltd has successfully extended its Special Grant 4571 licence in Zimbabwe's Cabora Bassa Basin for an additional three years, now valid until December 2027. This extension provides a critical runway for the company to advance its exploration and appraisal programs, including planned 3D seismic acquisition and further drilling activities. The licence extension underpins Invictus’ transition from exploration to development, reinforcing its dominant position in the basin.

Environmental Approval Paves Way for Pilot Production

In a significant regulatory milestone, the Zimbabwe Environmental Management Agency approved Invictus’ Environmental Social Impact Assessment (ESIA) for pilot production activities. This approval encompasses the Eureka Gold Mine Gas-to-Power Project, which aims to utilise gas from the Mukuyu field to supply reliable, cost-effective power directly to the mine. The ESIA approval is one of the most comprehensive environmental studies conducted in Zimbabwe, highlighting Invictus’ commitment to responsible and sustainable operations.

Exploration Expands Beyond Mukuyu with Musuma-1

Invictus has identified Musuma-1 as its first high-impact exploration well outside the Mukuyu gas-condensate discovery area. Targeting a new play type in the eastern portion of the licence, Musuma prospect holds prospective resources of approximately 1.2 trillion cubic feet of gas and 73 million barrels of condensate. The well is designed as a low-cost, low-risk vertical test to a depth of around 1,500 metres, with drilling anticipated in the second half of 2025. Success here could unlock a substantial new resource base, diversifying Invictus’ asset portfolio.

Strategic Partnerships and Farm Out Discussions Progress

During the quarter, Invictus advanced discussions with a range of potential farm out and strategic partners. These parties include industry operators and investment groups capable of providing technical expertise and capital to accelerate the Cabora Bassa Project’s development. The company’s strategy focuses on partners who can complement its strengths, fast-track appraisal and commercialisation, and support early gas monetisation efforts such as the pilot production at Eureka Gold Mine.

Streamlining Governance with Unified Petroleum Agreements

Following a successful board visit to Zimbabwe, Invictus is finalising the unification of its Petroleum Exploration Development and Production Agreement (PEDPA) with the Petroleum Production Sharing Agreement (PPSA). This consolidation aims to simplify administrative processes and enhance governance as the project advances toward commercial development. The streamlined agreement is expected to be executed imminently, providing clearer regulatory certainty for Invictus and its partners.

Financial Position and Outlook

Invictus reported exploration and evaluation expenditure of AUD 1.34 million for the quarter, with a net operating cash outflow of AUD 1.12 million. The company ended the period with a healthy cash balance of AUD 10.84 million, supporting ongoing exploration and pilot production planning. With the licence extension, ESIA approval, and active farm out discussions, Invictus is well positioned to advance its gas assets toward commercialisation in Zimbabwe’s emerging energy market.