Auditors Flag Doubt Over Invictus Energy’s Financial Stability Amid Zimbabwe Oil Push

Harare – Auditors have raised serious concerns over the financial viability of Invictus Energy, casting uncertainty over Zimbabwe’s flagship oil and gas ambitions in the Cabora Bassa Basin.

In an independent review of the company’s half-year financial results to December 31, 2025, BDO Audit Pvt Ltd director Dave Andrews flagged a “material uncertainty” that could affect Invictus’ ability to continue operating as a going concern.

“We draw attention to… conditions which give rise to… significant doubt about the group’s ability to continue,” Andrews said, warning the company may struggle to meet its obligations under normal business conditions.

Invictus reported a loss after tax of A$4.2 million, widening from A$3.3 million in the previous period, while net cash outflows reached A$4.1 million. The company acknowledged the risks, noting that its ability to operate over the next 12 months depends on securing additional funding.

“The going concern concept relates to the company’s ability to continue operations… without the need to raise money,” Invictus said, adding that this remains uncertain.

The warning comes at a critical stage for the Cabora Bassa project, where exploration success must transition into commercial development—a phase that requires significant capital. In January, Invictus terminated a major funding agreement with Al Mansour Holdings and Al Mansour Oil & Gas after failing to agree on revised terms. The deal, initially signed in August 2025, would have seen a 19.9% stake acquisition worth A$37.8 million and potentially unlocked up to US$500 million in future funding. Analysts say the collapse of this agreement removed a crucial financial lifeline at a time when the company needs deep capital reserves.

Invictus has since secured A$10 million in new funding, a modest injection relative to the scale required for full development. Managing director Scott Macmillan said the funds will support further exploration, including a planned well targeting the Musuma prospect.

“Success at Musuma would expand our resource base and accelerate the transition to commercial development,” he said.

The company is building on its earlier Mukuyu gas discovery, which renewed optimism about Zimbabwe’s potential to develop a domestic hydrocarbon industry.

Zimbabwe has long relied on fuel imports and faces persistent energy shortages. A successful oil and gas sector could transform the economy, reduce import dependence, and stabilise energy supply. However, experts warn that discovery alone is not enough.

“Turning exploration success into production requires sustained investment, technical capacity and investor confidence,” said an energy analyst familiar with frontier markets.

Zimbabwe’s ambitions unfold amid rising competition across southern Africa:

• Namibia has become a hotspot following major offshore discoveries in the Orange Basin.

• South Africa is advancing gas exploration in the Outeniqua Basin, despite regulatory challenges.

• Mozambique continues to lead with large-scale LNG projects.

• Botswana and Zambia are expanding early-stage exploration.

While the Cabora Bassa Basin remains one of Zimbabwe’s most promising energy prospects, the latest audit warning underscores a critical reality, financial strength, not just geological potential, will determine success. If funding gaps persist, analysts caution that the project risks stalling, joining other high-potential but underfunded ventures across the region.

Invictus Energy Zimbabwe