Invictus Energy (ASX: IVZ) wraps up Dec quarter with encouraging results - Kalkine Media

Highlights

• Invictus Energy is driven by its goal of opening one of the last untested large frontier rift basins in onshore Africa – the Cabora Bassa Basin, Zimbabwe through a high impact exploration programme.
• The ASX-listed company has released its report for the December 2022 quarter highlighting marked progress in development activities across different projects.
• In November 2022, fluorescence and elevated gas shows in the Upper Angwa primary target confirmed the presence of a conventional working hydrocarbon system in the Basin.
• During the quarter, Invictus executed a contract extension with Exalo Drilling S.A to keep the Exalo Rig 202 in the Cabora Bassa Basin for a year.
• ERCE updated the gross mean recoverable conventional potential estimate of the Basin Margin Area to be at a combined 1.17 billion barrels of conventional oil on a gross mean unrisked basis.
• According to IVZ, the NGS REDD+ project holds the potential to make the Cabora Bassa Project the world’s first carbon neutral oil and gas project and create a significant new revenue stream for the Company.

An independent upstream oil and gas company, Invictus Energy Limited (ASX:IVZ) has been marching forward to accomplish its goal of opening one of the last untested large frontier rift basins in onshore Africa – the Cabora Bassa Basin, Zimbabwe through a high impact exploration programme.

The ASX-listed company continued its growth journey in the December 2022 quarter as well with marked success in the ongoing development and exploration activities across different projects and wrapped up the quarter with AU$12.6 million cash. The December quarterly report corroborates the same. Have a look!

Working hydrocarbon system confirmed in Cabora Bassa Basin

Invictus had started its maiden oil and gas exploration drilling campaign at its Cabora Bassa Project in September 2022 with the spudding of the Mukuyu-1 well. In November last year, fluorescence and elevated gas shows in the Upper Angwa primary target confirmed the presence of a conventional working hydrocarbon system in the Basin. The Company has decided to deepen the well to a depth of 3,923m following encouraging results from preliminary logging activities.

Side wall core from Mukuyu-1 and cuttings showing fluorescence (Source: IVZ announcement)

Contract extension for Exalo Rig 202 

During the quarter, Invictus executed a contract extension with Exalo Drilling S.A to keep the Exalo Rig 202 in the Cabora Bassa Basin for a year. This will save time and money required for demobilising and remobilising the rig to and from East Africa for future drilling, claims IVZ. Rig 202 will be warm stacked at Mukuyu-1 to allow for maintenance and upgrades before drilling restarts at either Mukuyu-2 or Baobab-1.

Basin Margin Area estimated to hold 1.2billion barrel prospective oil resource

ERCE released an updated Independent Technical Report for substantial additional resource potential estimate in the Basin Margin Area of Exclusive Prospecting Order 1849.

The gross mean recoverable conventional potential of the Basin Margin Area has been estimated to be at a combined 1.17 billion barrels of conventional oil on a gross mean unrisked basis. In terms of scale, the estimated resource potential is equivalent to the prolific East African Rift System that led to significant discoveries in the “String of Pearls” plays in Uganda and Kenya.

 
Cabora Bassa Prospective Resource Summary & Play Map (Source: IVZ announcement)

Updates from Ngamo-Gwaai-Sikumi REDD+ Project

The draft Project Development Document (PDD) was completed for the Ngamo-Gwaai-Sikumi REDD+ (NGS REDD+) project. Also, Invictus kick started the listing process for project certification via Verra’s internationally recognised Verified Carbon Standard (VCS).

For the Ngamo forest area, Invictus has collaborated with Zambesia Conservation Alliance to start a pilot program focused on forest fire prevention and management.

To raise funds for the project, including equity, debt and prepayment structures, IVZ is in talks with different parties. This includes take or pay arrangements for future carbon offsets in line with the Company’s strategy to acquire high quality carbon offset projects such as NGS REDD+ project.

According to IVZ, the NGS REDD+ project holds the potential to make the Cabora Bassa Project the world’s first carbon neutral oil and gas project, and create a significant new revenue stream for the Company.

Post-quarter development

 
Updip potential towards crest of Mukuyu structure shown by interval velocity slowdowns in Pebbly Arkose & Upper Angwa

In January, IVZ announced that total 13 potential hydrocarbon bearing zones have been interpreted in the Pebbly Arkose and Upper Angwa formations following completion of operations of the Mukuyu-1 ST1 well. The primary target Upper Angwa formation has 11 identified potential hydrocarbon bearing zones spread over a combined 225m. Also, a zone of interest got identified in the secondary objective 200 Horizon. It is being understood to have potential hydrocarbons considering the significantly elevated resistivity (2x above baseline) across 10 to 15m interval.

The success of Mukuyu-1 on the southern flank of structure in a location that is 300 metres below the crest also highlighted untested updip potential. It will be targeted in future drilling programs.