The All Ordinaries Index (ASX: XAO) is down 1.1% in afternoon trade today, but that's not holding back this surging small-cap ASX energy stock.
The fast-rising stock in question is Invictus Energy Ltd (ASX: IVZ).
Invictus Energy shares closed yesterday trading for 6.7 cents. In earlier trade on Thursday, shares leapt to 10.5 cents apiece, up 56.7%. After some likely profit taking, at time of writing shares are swapping hands for 8.1 cents each, up 20.9%.
Here's what's grabbing investor interest.
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ASX energy stock rockets on Zimbabwe news
The Invictus share price is off to the races after the company announced that it has executed a milestone petroleum production sharing agreement (PPSA) with the Republic of Zimbabwe.
The agreement was inked by Geo Associates, which is 80% owned by the ASX energy stock.
Geo Associates is the operator and holder of Special Grant 4571 in Zimbabwe, which contains the Mukuyu gas-condensate discovery within Invictus Energy's Cabora Bassa licence area.
The ASX energy stock said the agreement establishes a strong legal, fiscal, and operational framework governing the Cabora Bassa Project, providing investment protection, contract stability, and development support mechanisms.
And both Zimbabwe's government and citizens could benefit under the agreement, with direct participation in the project's profits as well as royalties and corporate taxes,
What did Invictus management say?
Commenting on the deal sending the ASX energy stock soaring today, Invictus CEO Scott Macmillan said, "Execution of the Petroleum Production Sharing Agreement represents a landmark milestone for both the Cabora Bassa Project and the broader development of Zimbabwe's oil and gas industry."
Macmillan added:
The PPSA establishes a robust, transparent and globally competitive framework that provides long term certainty for all stakeholders, while creating a strong foundation to accelerate development activities across the basin.
Looking to what's next for the ASX energy stock, he concluded:
With this critical framework now in place, the company is firmly focused on advancing the next phase of exploration, appraisal and development activities, including the upcoming high impact Musuma-1 exploration well.
"The Cabora Bassa Project has the potential to become transformational for Zimbabwe through energy security, industrial development, employment creation and broader economic growth," Zimbabwe's minister of finance, economic development and investment promotion, Mthuli Ncube, said.
Ncube added:
This agreement creates a balanced and aligned framework that supports investor confidence while ensuring that Zimbabwe and its citizens directly participate in the long-term success of the project.
Zimbabwe's minister of mines and mining development, Polite Kambamura, concluded, "Through this agreement, Zimbabwe has established a framework that balances investor confidence with national participation and long-term value creation for the country."
