Invictus Energy : Half Yearly Report and Accounts

Invictus Energy Ltd

ACN 21 150 956 773

Half-Year Financial Report

31 December 2023

Invictus Energy Ltd

Half-year financial report 31 December 2023

Table of Contents
Corporate directory	1
Directors' report	2
Auditor's Independence Declaration	4
Auditor's Review Report	5
Consolidated statement of profit or loss and other comprehensive income	7
Consolidated statement of financial position	8
Consolidated statement of changes in equity	9
Consolidated statement of cash flows	11
Notes to the financial statements	12
Director's Declaration	19

Invictus Energy Ltd

Half-year financial report 31 December 2023

Corporate directory

Directors	Mr John Bentley
	Non-executive Chairman
	Mr Joseph Mutizwa
	Non-Executive Deputy Chairman
	Mr Scott Macmillan
	Managing Director
	Mr Robin Sutherland
	Non-executive Director
	Mr Gabriel Chiappini
	Non-executive Director
Company Secretary	Mr Gabriel Chiappini
Registered Office	Level 1, 10 Outram Street
	West Perth WA 6005
	Tel: [phone]
Share Register	Link Market Services Limited Ground Floor
	Level 4 Central Park
	152 St Georges Terrace
	Perth WA 6000
Stock Exchange Listing	Australian Securities Exchange (ASX: IVZ)
Auditor	BDO Audit (WA) Pty Ltd
	Level 9
	Mia Yellagonga Tower 2
	5 Spring Street
	Perth WA 6000
Solicitors	Steinepreis Paganin
	16 Milligan St, Perth WA 6000
Website	www.invictusenergy.com

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Invictus Energy Ltd

Half-year financial report 31 December 2023

Directors' report

The Directors present their report together with the financial statements for the half-year period ending on 31 December 2023.

Directors

The Directors of Invictus Energy Ltd (hereafter "Invictus" or "the Company") and the entities it controls are as set out above in the Corporate Directory. The Directors held their position for the full reporting period unless otherwise stated.

Principal Activities

The principal activities of the consolidated entity carried out during the financial year consisted of the exploration and appraisal of the Cabora Bassa Project.

Results of Operations and Dividends

The net loss from continuing operations for the half-year period to 31 December 2023 was $4,149,060 (31 December 2022: $2,062,623).

No dividends have been paid or declared by the Company during the period ended 31 December 2023 (31 December 2022: nil).

Review of Operations

A summary of the Review of Operations during the reporting period is provided below.

• Mukuyu-2appraisal well location was selected, the well pad construction was completed and spud achieved
• CB23 Seismic Survey was completed which provided new high resolution 2D coverage to the east of the Cabora Bassa Basin project area
• Additional Mukuyu-1 mudgas sample analysis was undertaken which reaffirmed the presence of light oil, gas, condensate and helium in the Mukuyu reservoir
• A successful placement was completed and secured AUD$15 million (gross) to support ongoing Mukuyu-2 exploration, evaluation and contingency
• Two gas discoveries were made from Mukuyu-2 in the Upper and Lower Angwa formations
• Mukuyu-1well from CY22 was classified as a gas discovery in the Upper Angwa
• The Mukuyu-2 well operations were completed and prepared for future flow test
• Gas sales MOU was signed with Mbuyu Energy for 500MW gas to power project
• Significant inbound interest for partnering and gas offtakes were evaluated
• Exalo Rig 202 contract was extended to allow for future drilling campaigns
• The Mukuyu project area was estimated to be second largest discovery made in Sub-Saharan Africa in 2023 by Wood Mackenzie
• Invictus' substantial portfolio of drill ready prospects and leads in Cabora Bassa basin were de-risked, providing ability to deliver further discoveries

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Invictus Energy Ltd

Half-year financial report 31 December 2023

Subsequent Events

On 3 January 2024 the Company applied for the quotation of 57,692,308 Listed Options expiring 7 June 2026 and 115,384,616 Shares.

On 9 January 2024 the Company applied for the quotation 103,771 Shares.

On 23 January 2024 the Company launched a pro-ratanon-renounceable entitlement issue of one Share for every 12 Shares held by Shareholders registered at the Record Date at an issue price of $0.13 per Share together with one Listed Option for every two Shares subscribed for and issued. Based on the capital structure of the Company approximately 117,204,164 Shares and 58,602,082 Listed Options may be issued under the Offer to raise up to $15,236,541 (before costs).

On 13 February 2024 that Company announced that Mukuyu-2 gas samples were due to arrive in the USA for laboratory analysis with results anticipated within 2 weeks from date of arrival.

On 14 February the Company announced that the pro-ratanon-renounceable entitlement issue was extended until the 6 March 2024.

On 4 March 2024 the Company announced that preliminary compositional analysis of downhole fluid samples confirmed a rich gas condensate discovery in the Mukuyu reservoir.

On 13 March 2024 the Company applied for the quotation of 5,722,896 Listed Options expiring 7 June 2026 and 11,445,580 Shares.

Other than the above, no matters or circumstances have arisen since the end of the financial period which have significantly affected or may significantly affect the operations, results or state of affairs of the group in future financial periods which have not been disclosed publicly at the date of this report.

Auditor's Independence Declaration

A copy of the auditor's independence declaration as required under Section 307C of the Corporations Act 2001 is set out on page 5 and forms part of this report.

This report is made in accordance with a resolution of directors.

Scott Macmillan

Director

13 March 2024

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Invictus Energy Ltd

Half-year financial report 31 December 2023

Auditor's Independence Declaration

Tel: [phone]	Level 9
Fax: [phone]	Mia Yellagonga Tower 2
www.bdo.com.au	5 Spring Street
	Perth, WA 6000
	PO Box 700 West Perth WA 6872
	Australia

DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF INVICTUS ENERGY LTD

As lead auditor for the review of Invictus Energy Ltd for the half-year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Invictus Energy Ltd and the entities it controlled during the period.

Jarrad Prue

Director

BDO Audit (WA) Pty Ltd

Perth

13 March 2024

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability

limited by a scheme approved under Professional Standards Legislation.	4

Invictus Energy Ltd

Half-year financial report 31 December 2023

Auditor's Review Report

Tel: [phone]	Level 9
Fax: [phone]	Mia Yellagonga Tower 2
www.bdo.com.au	5 Spring Street
	Perth, WA 6000
	PO Box 700 West Perth WA 6872
	Australia

INDEPENDENT AUDITOR'S REVIEW REPORT

To the members of Invictus Energy Ltd

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Invictus Energy Ltd (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at

31 December 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half- year ended on that date, a summary of significant accounting policies and other explanatory information, and the directors' declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group does not comply with the Corporations Act 2001 including:

1. Giving a true and fair view of the Group's financial position as at 31 December 2023 and of its financial performance for the half-year ended on that date; and
2. Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor's Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be the same terms if given to the directors as at the time of this auditor's review report.

Material uncertainty relating to going concern

We draw attention to Note 1 in the financial report which describes the events and/or conditions which give rise to the existence of a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. Our conclusion is not modified in respect of this matter.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability

limited by a scheme approved under Professional Standards Legislation.	5

Invictus Energy Ltd

Half-year financial report 31 December 2023

Auditor's Review Report

Responsibility of the directors for the financial report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor's responsibility for the review of the financial report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group's financial position as at 31 December 2023 and its financial performance for the half-year ended on that date and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

BDO Audit (WA) Pty Ltd

Jarrad Prue

Director

Perth, 13 March 2024

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Invictus Energy Ltd

Half-year financial report 31 December 2023

Consolidated statement of profit or loss and other comprehensive income

For the half year ended 31 December 2023

		31-Dec-23	31-Dec-22
	Note	A$	A$
Interest revenue		46,919	36,446
Corporate costs	2	(1,162,208)	(1,052,369)
Professional fees		(886,780)	(291,359)
Director fees		(334,661)	(214,404)
Share based payments	9	(1,413,005)	(403,000)
Other expenses		(176,697)	(110,582)
Depreciation		(128,648)	(121,531)
Finance costs		(16,204)	(22,499)
Foreign currency loss		(77,776)	116,675
Loss before income tax		(4,149,060)	(2,062,623)
Income tax expense		-	-
Loss after income tax		(4,149,060)	(2,062,623)
Loss for the period attributable to:
Members of the parent entity		(3,973,258)	(1,901,598)
Non- controlling interest		(175,802)	(161,025)
Loss for the period		(4,149,060)	(2,062,623)
Other comprehensive income:
Items that may be reclassified subsequently to profit and loss:
Foreign currency translation - members of the parent entity		(88,365)	(82,084)
Foreign currency translation - non- controlling interest		(20,368)	(20,513)
Total other comprehensive (loss) for the period		(108,733)	(102,597)
Total comprehensive loss for the period attributable
to:
Members of the parent entity		(4,061,623)	(1,983,682)
Non- controlling interest		(196,170)	(181,538)
Total comprehensive loss for the period		(4,257,793)	(2,165,220)
Basic and diluted loss per share (cents) attributable to
the ordinary equity holders of the Company	6	(0.32)	(0.23)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

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Invictus Energy Ltd

Half-year financial report 31 December 2023

Consolidated statement of financial position

As at 31 December 2023

		31-Dec-23	30-Jun-23
	Note	A$	A$
ASSETS
Current assets		4,723,322	22,931,927
Cash and cash equivalents
Trade and other receivables		293,154	344,486
Other current assets		39,941	82,747
Total current assets		5,056,417	23,359,160
Non-current assets		115,198,321	74,256,799
Exploration and evaluation expenditure	5
Leasehold acquisition costs for Carbon Credits		765,340	732,588
Property, plant and equipment		119,542	174,828
Other financial assets		120,771	120,771
Right of use - asset		235,047	309,273
Total non-current assets		116,439,021	75,594,259
Total assets		121,495,438	98,953,419
LIABILITIES
Current liabilities		12,048,634	2,445,746
Trade and other payables	4
Provisions		92,774	92,774
Right of use - liability		156,135	145,906
Total current liabilities		12,297,543	2,684,426
Non-current liabilities		137,964	219,157
Right of use - liability
Total non-current liabilities		137,964	219,157
Total liabilities		12,435,507	2,903,583
Net assets		109,059,931	96,049,836
EQUITY
Share capital	7	133,120,588	117,371,778
Reserves		8,606,017	7,175,304
Accumulated losses		(33,203,323)	(29,230,065)
Total equity attributable to owners of Invictus Energy Ltd		108,523,282	95,317,017
Non- controlling interest		536,649	732,819
Total equity		109,059,931	96,049,836

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

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