Invictus Energy (ASX: IVZ) shares jump 15% on encouraging gas signs from Mukuyu-2 well

Highlights

• Invictus Energy has encountered strong gas shows, with related drilling breaks and fluorescence in additional Lower Angwa sandstone reservoirs at Mukuyu-2 well.
• The company has defined Total Depth at 3,718mMD to begin wireline logging to measure different zones of interest in the 8 ½ inch hole section.
• According to IVZ, the borehole condition after drilling to Total Depth and pulling out of hole is good and conducive for conventional wireline logging operations.
• Invictus has planned to conduct a wiper trip before fluid sampling to prepare the wellbore for the fluid sampling operation and subsequent wireline runs.
• According to the company, the well is within budget and on track to be completed as per the guided timeline of 50 to 60 days.

Shares of Invictus Energy Limited (ASX:IVZ) were spotted trading 15.9% higher today on the Australian Securities Exchange (ASX) after the company announced an update relating operations underway at the Mukuyu-2 well at its 80% owned and operated Cabora Bassa Project in Zimbabwe. The stock was trading at AU$0.255, with a market cap of AU$272 million, at the time of writing.

The latest announcement reveals that Invictus has encountered strong gas shows, with related drilling breaks and fluorescence in cuttings in numerous additional Lower Angwa sandstone reservoirs from 3,296mMD to Total Depth (TD).

Details of the new findings

When drilling restarted, high levels of trip gas were observed along with increasing levels of connection gas.

Due to higher levels of connection gas, Invictus has to increase the drilling mud weight further to enable drilling beyond the Total Depth. The company has defined Total Depth at 3,718mMD to begin wireline logging to measure different zones of interest in the 8 ½ inch hole section.

According to IVZ, the borehole condition after drilling to Total Depth and pulling out of hole is good and conducive for conventional wireline logging operations. Presently, wireline logging is being conducted to measure the 8 ½ inch hole section.

Fluorescence in cuttings from Lower Angwa reservoir @ 3,645mMD with associated gas shows and drilling break
Image source: IVZ update

How is IVZ planning to move ahead?

IVZ is undertaking wireline logging programme including formation pressure and fluid sampling, sidewall cores and checkshot surveys to confirm whether moveable hydrocarbons are present in multiple zones in the Upper and Lower Angwa formations to declare a discovery.

The company has planned to conduct a wiper trip before fluid sampling to make the wellbore for the fluid sampling operation and subsequent wireline runs. This will be done after the initial suite of wireline runs to collect the required geological data to analyse the current hole section.  

It is likely that the wireline logging program, including the planned wiper trip, will be completed in six to eight days. Considering the results and drilling conditions, Invictus will plan for deepening the well to intersect additional seismic reflectors in Lower Angwa below the current Total Depth of 3,718m.

IVZ has mobilised a 7-inch liner to complete the Mukuyu-2 well in preparation for a future well test. According to the company, the well is within budget and on track to be completed as per the guided timeline of 50 to 60 days.