Invictus Energy (ASX: IVZ) selects location for Mukuyu-2 appraisal well, shares jump

Highlights

• The Mukuyu-2 well would be situated around 6.8km north-east of Mukuyu-1.
• The appraisal well is planned to be drilled to a depth of ~3,700m to access the untested Lower Angwa reservoirs.
• The campaign is expected to deliver data for all prospective formations along with high-grade additional drill ready targets.
• The wellpad construction works have begun, and the Exalo 202 Rig is expected to arrive at the location in July or August.

Invictus Energy Limited (ASX: IVZ) shares gained more than 10% early this morning after the company announced a significant update concerning its Mukuyu-2 appraisal well. 

The company has finalised the location for Mukuyu-2, and arrangements for the drilling of Mukuyu-2 are progressing well. The wellpad construction works have commenced.

Invictus confirmed that Mukuyu-2 remains on track to spud in the third quarter (3Q) of CY23. 

Selection of Mukuyu-2 appraisal well

The Mukuyu-2 appraisal well location and subsurface targets have been selected after the finalisation of the refined seismic interpretation, including results from the Mukuyu-1/ST-1 well.

Mukuyu-2 would be situated around 6.8km north-east of Mukuyu-1. The Triassic Upper Angwa Formation – the primary target interval - is ~400m shallower at Mukuyu-2 compared to Mukuyu-1. The location is expected to deliver information regarding the reservoir quality and distribution of the Upper Angwa sands.

The Mukuyu-2 well trajectory is close to vertical from the surface location as it will offer optimal penetration of stratigraphic intervals and minimise operational complexity for formation evaluation and drilling activities.

The drilling at the well will be conducted to a depth of 3,700m, allowing the company to access the untested Lower Angwa reservoirs. 

Mukuyu-2 well construction begins

The drilling of Mukuyu-2 focuses on leveraging insights and lessons from Mukuyu-1 to enhance the operational risk profile, drilling efficiency and logistics of Mukuyu-2.

Civil engineering works have commenced for the arrival of the Exalo 202 Rig at the wellsite in July or August. Drilling at Mukuyu-2 is anticipated to start later in the third quarter of CY23.

The company expects drilling and logging operations to take 50-60 days. 

IVZ share performance

IVZ shares gained 10.416% to trade at AU$0.132 per share at the time of writing on 13 July with a market capitalisation of over AU$141 million.