Two gas discoveries light up Invictus Energy’s (ASX: IVZ) December quarter

Highlights

• Invictus Energy made two significant gas discoveries at the Upper and Lower Angwa targets of the Mukuyu-2 drilling program in the last quarter.
• Mukuyu has been recognised as the 2nd largest discovery in Sub-Saharan Africa in 2023, by Wood Mackenzie.
• Invictus inked a contract amendment with Exalo Drilling S.A to retain Rig 202 for another two years.
• The company inked a MOU with Mbuyu Energy to render 500MW gas supply to a power project.
• Invictus secured AU$15 million through a private placement in the quarter.

Headquartered in Perth, Invictus Energy Limited (ASX:IVZ)  has emerged as an eminent player in the upstream oil & gas sector. With some significant gas discoveries at the Mukuyu field in the Cabora Bassa Basin in northern Zimbabwe, Invictus is steering forth a high impact exploration programme at one of the last untested large frontier rift basins in onshore Africa.

Recently, the company released its quarterly report for the three-month period ended 31 December 2023, stating details of its operational performance in the quarter. Read further for in-depth information of the major developments!  

IVZ unfolding gas discoveries at Mukuyu-2  

Invictus made two significant discoveries with 15 downhole gas-condensate samples from the Upper and Lower Angwa targets of the Mukuyu-2 drilling program. It involved a combined preliminary net pay of 34.9m.

According to the company, the Upper Angwa findings represent one of the most prominent developments in the onshore southern Africa oil & gas industry after a long time. An independent analysis completed by Wood Mackenzie of late recognised Mukuyu as the 2nd largest discovery in Sub-Saharan Africa in the year 2023.

At the Lower Angwa formation, Mukuyu-2 sidetrack touched 3,360m of total depth. Also, an additional gas discovery has been confirmed from wireline logging in the Lower Angwa.

Additional 11 hydrocarbon samples have been retrieved so far.

IVZ reported over-pressured gas in the Mukuyu-2 wellbore in the Lower Angwa under 3,400m Measured Depth. Also, it observed connection gases during drilling and high amounts of trip gas after touching total depth.

Post such discoveries, IVZ has emphasised on the ‘incredible potential of the Mukuyu gas field’.

Mukuyu Gas Field Upper Angwa Top Structure Map showing location of Mukuyu-1 and Mukuyu2 gas discoveries

Image source: company update

IVZ extends Exalo Rig 202 agreement

During the quarter, IVZ entered into a contract amendment with Exalo Drilling S.A to retain Rig 202 for another two years to support the company’s future drilling programs. Invictus is prepping up for future drilling and testing campaigns in the Cabora Bassa Basin.

Update on CB23 Seismic Survey

The company is interpretating 425km of high-resolution data gathered from its CB23 infill seismic survey. IVZ conducted the survey in partnership with Polaris Natural Resources in August 2023, while Earth Signal Processing Ltd was responsible for data processing.

MOU with Mbuyu Energy for gas supply  

IVZ inked a gas sales memorandum of understanding with Mbuyu Energy for the supply of gas for a 500MW gas to power project.

As per the agreed terms of the MOU, IVZ will be supplying gas to Mbuyu for the power project plant, that can deliver maximum 1,000MW in the future. It is likely that the total demand may rise up to 1.4 TCF of natural gas over the next two decades.

Capital raising via placement

Invictus secured funds of AUD$15 million through completion of a private placement, during the quarter. Under the placement, IVZ issued around 115,384,616 new fully paid ordinary shares at an issue price of AU$0.13 per new share. The company plans to utilise the raised capital to advance development work at the Cabora Bassa project.

What’s the status of developments at the basin?

The company has been successful in collecting data logs for 38 rotary sidewall cores, and a vertical seismic profile for log to seismic calibration.

It has successfully installed a 7-inch liner in the Mukuyu-2 sidetrack well for suspension for future flow testing. This would bring in an opportunity to re-drill, analyse and test the remaining portion of the Lower Angwa in future 6-inch hole operations.

Going forth, Invictus intends to make more discoveries from its portfolio of drill-ready prospects and leads, thanks to its dominant acreage position in the Cabora Bassa basin.

IVZ shares traded at AU$ 0.100 on 01 February 2024.