Invictus Raises $10 Million for Muzarabani Well as Zimbabwe Oil Search Intensifies
Invictus Energy has raised A$10 million through a share placement to institutional and sophisticated investors, funding the drilling of its high-impact Musuma-1 exploration well in the Muzarabani area as the company pushes toward commercial production in one of Africa’s last untested onshore basins, Mining Zimbabwe can report.
By Rudairo Mapuranga
The Australian explorer issued 166.7 million shares at A$0.060 each, a 0.6 percent discount to the 15-day volume-weighted average price but a 6.8 percent premium to the 30-day average. Investors will also receive one attaching option for every two shares allocated, exercisable at A$0.10 with a two-year expiry.
The placement received strong support from both existing and new shareholders, according to Managing Director Scott Macmillan, who said the funds will be primarily allocated to the Musuma-1 well, which is designed as a simple vertical well to a planned depth of approximately 1,500 metres.
Musuma-1 targets the Dande Formation, a relatively shallow reservoir that has already shown signs of hydrocarbons. When Invictus drilled the Mukuyu-2 appraisal well, the Dande Formation at that location exhibited good reservoir quality and residual hydrocarbons, indicating that an active petroleum system capable of charging the formation is present. However, Mukuyu-2’s Dande interval did not contain a trapped accumulation, likely due to local trap breach.
Musuma’s structure, by contrast, displays seismic characteristics indicative of an intact trap, including a consistent “flat spot” observed across multiple seismic lines and survey vintages. A flat spot is a horizontal reflector that indicates a gas-water contact, and together with updip brightening, these direct hydrocarbon indicators significantly enhance confidence in the presence of hydrocarbons at Musuma.
The prospect targets 1.2 trillion cubic feet of gas and 73 million barrels of condensate on a gross mean unrisked basis. Success at Musuma would unlock a new play fairway in the eastern portion of Invictus’ 360,000-hectare acreage position, expanding the company’s resource base beyond the already proven Mukuyu gas field.
The Cabora Bassa Basin in northern Zimbabwe remains one of the last underexplored large frontier rift basins in onshore Africa. Invictus holds an 80 percent interest in the project through its subsidiary Geo Associates, with the Mutapa Investment Fund holding the remaining 20 percent.
The Mukuyu gas field, discovered by Invictus, has been described as the second-largest petroleum find in Sub-Saharan Africa in 2023 by Wood Mackenzie. Independent estimates suggest the field could hold up to 20 trillion cubic feet of gas and 845 million barrels of conventional gas condensate.
The company has already secured all necessary permits for exploration and pilot commercialisation activity. Zimbabwe’s Environmental Management Agency renewed the Environmental Impact Assessment for Special Grant 4571 and Exclusive Prospecting Orders 1848 and 1849 through March 2027, covering the project area. Health, safety, and environment management plans are also in place.
The PPSA and Commercial Pathway
Invictus has scheduled the execution of its Petroleum Production Sharing Agreement with the Government of Zimbabwe for April, though officials in Harare have yet to confirm a specific date. The PPSA will establish the legal and fiscal framework for petroleum operations and will serve as the model contract for all future participants in Zimbabwe’s oil and gas industry.
Once the PPSA is executed, Invictus intends to fast-track early production through a gas-to-power pilot project. The company has already secured an EIA permit for a pilot production scheme at Eureka Gold Mine as a proof-of-concept. Site construction for the Musuma-1 well pad will commence in due course, timed for completion ahead of drilling preparations in the second half of 2026.
The company is securing the necessary drilling rig and service contracts following the receipt of proposals from major service providers. After drilling, the well will be logged and evaluated. If hydrocarbons are encountered in significant quantities, comprehensive well testing will follow, designed to measure flow rates, reservoir pressure, and fluid characteristics.
The A$10 million placement provides a critical funding bridge for Invictus, which reported a cash balance of A$4.51 million as of December 2025 and a half-year net loss of A$4.23 million. The company’s auditor, BDO, had previously flagged a material uncertainty regarding Invictus’ ability to continue as a going concern without additional funding.
Alpine Capital acted as sole lead manager and bookrunner for the placement, receiving a 6 percent capital raising fee and 27.8 million broker options on the same terms as the attaching options. Settlement is expected on 28 April 2026.
Macmillan will host a shareholder briefing webinar on 22 April to provide a detailed update on the Musuma-1 campaign and the broader Cabora Bassa development pathway.
