ZIMBABWE’S only oil and gas operator, Invictus Energy Limited incurred a net loss of US$1,3 million for the year ended June 30, 2021, down 29% compared to the same period last year.
For the year ended June 30, 2020, the company incurred a US$1,8 million loss.
The Australian Securities Exchange-listed firm is exploring for oil and gas in the Cabora Bassa Basin in Zimbabwe, which is one of the largest under-explored interior rift basins in Africa.
In its annual report for the period, Invictus said it experienced net cash outflows from operating activities of US$767 676 against US$1,6 million during the same period in 2020.
It said net cash outflows from investing activities stood at US$1,3 million, up from US$806 904 for the year ended June 30, 2021.
During the financial year, the group said it deployed working capital into advancing its Cabora Bassa project.
The group has also commenced a Seismic programme in the country.
At the date of reporting, the group had a commitment of US$20 000 that was due to be paid to maintain tenure over the project area.
“It is anticipated that any further exploration activities, including drilling programmes, are to be funded via a joint venture partner investment which would result in the group divesting its ownership interest in the Cabora Bassa Project,” the group said.
“The cashflow forecast for the period ending September 30 2022, indicates that the group is not required to raise additional capital in order to continue its exploration and evaluation activities in Zimbabwe and to fund working capital,” the firm said.
In a joint address, non-executive chairman Stuart Lake and managing director Scott Macmillan, said Invictus had operated safely and managed costs and expenditure over the past year, particularly during the tumultuous first part of the year when the pandemic was at its peak.
“Throughout the recent challenges to the business environment, we have used our in-house team to maintain a firm hand on costs while expediting quality work and delivery.
“We responded rapidly to COVID-19 by reducing our cost base. 2020/21 has been a transformational year for Invictus,” they said.
“Product prices are now recovering in a post-pandemic world both in oil and gas and our share value has increased over 486% in the past year, a testament to our achievements to date.”
They said the company completed a heavily oversubscribed capital raise of US$8 million by way of a private placement to sophisticated and institutional investors in March 2021 which was led by PAC Partners.
The capital raise was supported by a number of existing shareholders as well as new investors which has put the company in a strong position to self-fund the work programme this year which will create additional shareholder value.
Invictus has made further significant progress in the past year in the development of the Cabora Bassa project that encompasses the Muzarabani prospect.