Oil and gas firm Invictus Energy Limited is shifting strategy to acquire producing and near-term oil and gas assets to fast-track revenue generation, even as its flagship Zimbabwe project remains commercially inactive since 2018.
The pivot follows years of limited progress at its Cabora Bassa Project in Muzarabani, where funding constraints and the collapse of a US$500 million investment deal slowed development, prompting the company to diversify into revenue-generating assets in multiple jurisdictions.
Invictus has been operating in Zimbabwe since 2018, but has yet to commence commercial production from its Cabora Bassa Project in the Muzarabani District of Mashonaland Central province.
In December 2023, the company announced a gas discovery at its Mukuyu well, identifying indications of a potential 184 million barrels of oil equivalent. However, progress has been slowed by funding constraints.
The firm previously secured a proposed US$500 million investment from Qatari investor Al Mansour Holdings last year to advance the project. However, the deal was terminated in January after Invictus revealed that the Qatari firm had failed to meet its contractual obligations and proposed revised terms inconsistent with Australian Securities Exchange requirements, where the company is listed.
“We are targeting acquisitions of producing and near-term development fields. We have secured support from a major oil and gas trading company to provide acquisition finance for these major assets,” Invictus managing director Scott Macmillan told shareholders in the company’s latest investor update.
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“We’re in discussions with a number of them and, looking back at the period with Al Mansour Holdings and the engagements we had across continents — not only with governments, but also with national oil companies, private oil companies and some trading firms — we have maintained those relationships.”
He said these partners were keen to support the company’s new direction.
“Now that we have financial support, we have been able to remain in some of the processes for assets we were previously negotiating for, and we have secured backing to bring new assets into the company,” Macmillan said.
“That will be done primarily through debt financing, as well as prepayment facilities.”
The firm recently secured AU$10 million (US$7,15 million) in capital commitments to support ongoing exploration activities at its project, including drilling at its Musuma-1 well.
The site is estimated to hold up to 1,2 trillion cubic feet of gas and 73 million barrels of condensate — a valuable liquid hydrocarbon refined into fuels such as petrol, diesel and jet fuel. It can also be used as a blending component in oil refining.
Macmillan said the company is leveraging its relationships to build a broader asset base.
“I think part of the silver lining of the deal termination with Al Mansour Holdings is that, instead of holding a 10% stake in some of the new assets we bring in, we will now have a 100% stake, backed by financing as well,” he said.
Macmillan added: “We are looking to do this in the near term and over the next six to 12 months, depending on which transactions we are able to complete.”
However, he said the team remains focused on Zimbabwe despite the developments.
“We do not want to have any lulls in activity like we have seen in the last two years, even though the team has been hard at work,” Macmillan said.“This will see a multi-pronged approach to our business, operating in multiple jurisdictions and across multiple types of assets.”