Invictus Energy Picks Site for High-Impact Gas Well, Advances Key Deal with Zimbabwe

Invictus Energy (ASX: IVZ) has selected the Musuma-1 well as its next high-impact exploration site in Zimbabwe’s Cabora Bassa Basin, marking a major expansion beyond the company’s flagship Mukuyu gas-condensate discovery.

The decision was announced alongside progress on a key regulatory development: the unification of the company’s petroleum agreements with the Zimbabwean government, with MD Scott Macmillan reiterating that the project has, "the strong support from all levels of Government and the broader Zimbabwean community."

Musuma-1 will target an estimated 1.2 trillion cubic feet of gas and 73 million barrels of condensate, with drilling slated to begin in the second half of 2025. The well is designed as a simple, low-cost vertical well reaching a depth of around 1,500 meters, tapping into a relatively shallow reservoir in the Dande Formation.

The Musuma prospect stands out among the eight leads identified in the recent CB23 seismic survey, showing strong seismic indicators including a “flat spot” and amplitude anomalies—hallmarks of potential hydrocarbon accumulations. Invictus says these indicators, along with favourable data from the nearby Mukuyu-2 appraisal well, significantly raise confidence in the site's commercial potential.

“Musuma is a technically compelling prospect, underpinned by multiple lines of seismic evidence,” said Managing Director Scott Macmillan. “Success at Musuma would unlock a new play fairway, significantly advancing our forward development plans, expand our resource base and accelerate the transition from exploration to commercial development."

The Cabora Bassa region is considered one of Africa’s last underexplored onshore hydrocarbon basins. A discovery at Musuma could also help fast-track Invictus’s early gas monetization strategy, including a pilot production project linked to the Eureka Gold Mine.

Updating Petroleum Production Agreement with Zimbabwe

In tandem with operational progress, Invictus also announced that it will unify its Petroleum Exploration Development and Production Agreement (PEDPA) and Petroleum Production Sharing Agreement (PPSA) into a single framework with the Zimbabwean government. The updated deal, currently being fast-tracked for execution, is expected to streamline administrative processes and strengthen project governance as it moves toward development.

The agreement follows a recent site visit by Invictus’s board, which included meetings with senior government officials, the Mutapa Investment Fund, and prospective offtake partners. According to the company, the unified agreement reflects “a shared commitment” to enabling a successful project rollout and de-risks the regulatory environment as the company approaches commercial production.

Rig 202, currently undergoing maintenance at the Mukuyu-2 site, is expected to be redeployed for the Musuma campaign. Health and safety preparations, including an updated Environmental Impact Assessment, are already in place. Long lead items and service contracts will be finalized following the execution of the new agreement.