Victoria Falls Stock Exchange-listed oil and gas exploration company, Invictus Energy Limited, has reported that its quarterly expenditure was significantly influenced by the weakening Australian dollar (AUD) against the US dollar (USD). This was revealed in the company’s quarterly report for the period ending December 31, 2024.
Key Financial Highlights
The company’s exploration and evaluation activity spend for the quarter amounted to AUD$3.93 million (US$2.5 million). A significant portion of this expenditure—AUD$2 million—was allocated to the close-out of the Mukuyu-2 well. The weakening AUD-to-USD exchange rate amplified the Australian dollar equivalent of US dollar payments, further inflating the total spend.
In its statement, Invictus explained, “The exploration and evaluation activity spend for the quarter totaled AUD$3.93 million. This includes non-recurring payments for the close-out of the Mukuyu-2 well (AUD$2 million) and has been impacted by the weakening AUD-to-USD exchange rate.”
Australian Dollar Trends
According to a report by the Australian Broadcasting Corporation, the Australian dollar dropped to its lowest level since 2020 during the quarter, trading at approximately 61.44 US cents. This marked a significant decline of nearly 9% over the past three months, driven by a surge in the US dollar, which hit a two-year high due to stronger-than-expected employment data in the US.
While the Australian dollar’s depreciation was pronounced against the US dollar, its decline against other currencies was less steep. The Reserve Bank of Australia’s trade-weighted index (TWI) showed a more moderate decline, suggesting that the AUD’s depreciation was primarily due to USD strength.
Operational Milestones
Despite currency challenges, Invictus reported significant progress in its operations and corporate developments, including:
- Final Review of Petroleum Production Sharing Agreement (PPSA):
The company finalized an independent review of the PPSA, a key milestone for the Cabora Bassa Project. The agreement ensures equitable value distribution among the Zimbabwean government, Invictus, and its partners. - Farm-Out Process Advancements:
Invictus is actively engaging potential partners to secure funding for the Cabora Bassa Project, which includes the Musuma prospect—estimated to contain over 1 trillion cubic feet (Tcf) of gas and 73 million barrels of condensate. - Future Drilling Plans:
Preparations are underway for the next drilling campaign, along with additional 3D seismic studies, appraisal drilling, and well testing at the Mukuyu Gas Field. These activities aim to identify locations for future development wells and support early commercialization efforts, including a pilot gas-to-power project for Eureka Gold Mine.
Corporate Developments
On the corporate front, Invictus completed the second tranche of its US$10 million strategic investment in Zimbabwe, raising an additional US$2 million through oversubscriptions. This marks a historic milestone, enabling Zimbabwean investors to hold and trade Invictus shares via its secondary listing on the Victoria Falls Stock Exchange (VFEX).
Additionally, all resolutions were passed at the company’s Annual General Meeting on November 29, 2024. Invictus also disclosed payments of AUD$239,701 to related parties during the quarter, covering salaries and fees for executive and non-executive directors, as well as the company secretary.
Transitioning Towards Development
Headquartered in Perth, Australia, with offices in Harare, Zimbabwe, Invictus Energy is transitioning from an exploration-focused entity to a development-focused one. This shift follows its significant gas discovery at the Mukuyu field in the Cabora Bassa Basin.
Looking ahead, the company is poised to capitalize on its exploration success by advancing development projects, securing strategic partnerships, and driving early commercialization efforts.
Despite currency fluctuations, Invictus Energy remains committed to unlocking Zimbabwe’s hydrocarbon potential, marking an exciting phase for both the company and the country’s energy sector.
