Highlights

• Invictus has confirmed a significant discovery of rich gas-condensate at the Mukuyu prospect in Zimbabwe.
• The condensate gas ratios are estimated at 10-25 bbl/MMscf of gas, with a likely API gravity of 50-60°.
• Downhole fluid analysis suggests the presence of source rocks capable of generating light oil.
• IVZ views the discovery of migrated hydrocarbons as positive news for Mukuyu's overall potential.

Headquartered in Perth, Invictus Energy Limited (ASX:IVZ) has confirmed a significant discovery of rich gas-condensate at the Mukuyu prospect in Zimbabwe, after receiving results from a recent analysis of downhole reservoir fluid samples.

The findings suggest the gas has a consistent composition with low inert content, minimal CO₂ (less than 2%), and no H₂S, requiring minimal processing for sale.

The condensate gas ratios are estimated at 10-25 barrels per million standard cubic feet (bbl/MMscf) of gas, with a likely API gravity of 50-60°.

Furthermore, the analysis suggests biodegradation of an earlier light oil charge in the shallower sections of the Mukuyu structure.

At present, geochemical analysis is ongoing to assess the potential for liquids to re-migrate and accumulate elsewhere in the structure, particularly shallower zones.

This discovery highlights the potential of the Cabora Bassa project and paves the way for further exploration within the Mukuyu prospect.

Prominence of the results

Downhole fluid analysis at Mukuyu reveals promising signs beyond the initial gas-condensate discovery. The results suggest the presence of source rocks capable of generating light oil. These oils may be trapped within the Mukuyu structure (Upper Angwa formation) or have migrated to shallower zones.

Also, the preliminary mudgas isotope analysis in the Dande formation hints at a biogenic gas component. Further investigation is underway to identify the source(s) of hydrocarbons in this formation, aiding the evaluation of prospects along the southern basin margin and east of the newly acquired CB23 seismic data area.

Analysis done so far suggests the hydrocarbons in Mukuyu-2 share a source with those found in Mukuyu-1, indicating both gas-prone and liquid-prone source rocks across a large area encompassing the Mukuyu structure.

Moreover, the findings support Invictus Energy's geological model, which predicted multiple hydrocarbon charge events from various source rocks. The model suggests an increase in liquid content towards the southern basin margin and a rise in dry gas contribution from deeper, higher maturity source rocks north of Mukuyu.

The findings strengthen the company’s confidence in the potential of the Cabora Bassa project, revealing possibilities beyond the initial gas-condensate discovery.

An essential push forward

Invictus Energy views the discovery of migrated hydrocarbons as positive news for Mukuyu's overall potential.

The migrated hydrocarbons indicate a well-functioning system for hydrocarbon charge, migration, and reservoir connectivity within Mukuyu. Further analysis of reservoir and source rock samples will provide deeper insights into the connection between hydrocarbons and their source.

This information will be used to model hydrocarbon charge in shallower formations like Pebbly Arkose and Dande. Mudgas data will further refine these models.

The learnings will be used to evaluate potential well locations throughout Mukuyu and across the company's wider portfolio.

Also, the results validate Invictus Energy's pre-drilling geological modelling and offer valuable data for refining its prospect portfolio. This information will be crucial for selecting future exploration well locations.

IVZ shares traded at AU$ 0.080 on 22 March 2024.