Last month, Invictus Energy announced a landmark partnership that marks the beginning of a new era for our Company and our shareholders.
Following an extensive process and more than a year of negotiations, we executed a binding Memorandum of Understanding (MOU) and Share Subscription Agreement with Qatar’s Al Mansour Holdings (AMH), led by His Highness Sheikh Mansour bin Jabor bin Jassim Al Thani.
Under this agreement, AMH will acquire a 19.9% stake in Invictus for A$37.8 million and provide up to US$500 million in conditional funding to progress the Cabora Bassa Project through to commercial production. This commitment underscores the quality of our flagship asset and the confidence our partner has in Invictus’ long-term growth trajectory.
While operational activity at Cabora Bassa has been relatively quiet in recent months, this time has enabled our team to secure this transformational partnership.
Importantly, AMH is much more than an oil and gas investor. It is a pan-African investment group, committed to developing and investing in multiple industries in Africa, including energy, mining, agriculture, infrastructure, logistics, hospitality, technology and real estate.
By aligning with AMH’s African investment strategy, Invictus is now positioned at the centre of a far-reaching African growth story, with long-term institutional backing that extends beyond the energy sector.
A cornerstone of this partnership is the creation of Al Mansour Oil and Gas (AMOG) – a new joint venture between AMH and Invictus. AMOG will target upstream producing and near-term development oil and gas assets across Africa, with Invictus leading technical, commercial and operational management, while AMH funds acquisitions and development.
Our 10% ownership of AMOG is entirely free carried by AMH, meaning no capital is required from Invictus to build a portfolio of projects and move them towards development and production, or manage producing assets that enter the portfolio.
Together, this combination of financial strength and proven operational expertise provides the foundation to build a diversified upstream portfolio that delivers reliable energy, sustainable growth and socio-economic benefits across the African continent.
Invictus’ priority remains progressing the Cabora Bassa Project, but the formation of AMOG provides exciting new opportunities to expand our footprint and accelerate growth across Africa.
Cabora Bassa progress
In parallel with this partnership, the Cabora Bassa Project was recently awarded National Progress Status (NPS) by the Government of Zimbabwe. NPS recognises projects of national importance and provides significant fiscal benefits that will reduce costs and accelerate project execution as we move towards development.
Additionally, we have agreed terms for the long-awaited Petroleum Production Sharing Agreement (PPSA) with the Republic of Zimbabwe, with formal execution expected imminently.
These are pivotal milestones that highlight the Zimbabwe Government’s commitment to unlocking the nation’s energy potential and further strengthen the project’s pathway to commercialisation.
We are preparing to commence our high impact campaign with the first well in the sequence targeting the Musuma prospect in the Eastern Margin Play. The Musuma-1 well will test the 1.2 Tcf + 73 million barrels of condensate (gross mean unrisked) target, which if successful will provide valuable insights into the Eastern Margin plays, refining our focus for the project’s initial development phase.
Outlook
The AMH partnership reflects the culmination many months of persistence, commitment and belief in the quality of our assets and long-term strategy. With this partnership in place, Invictus is better positioned than ever to deliver on its vision of becoming a leading African energy company.
I thank our shareholders, partners and employees for their ongoing support and patience throughout this journey. We are now uniquely placed to unlock long-term value for all stakeholders, and I look forward to sharing further positive news as we enter this exciting new chapter of growth.
