This is why Invictus Energy (ASX:IVZ) shares rose on ASX today - Kalkine Media

Highlights

• Invictus Energy Limited (ASX:IVZ) is gearing up for its upcoming exploration campaign in Cabora Bassa basin.
• Exalo Rig 202 has commenced mobilisation from Songo Songo Island in Tanzania to Cabora Bassa.
• Long lead items, including casing, have begun arriving at Invictus’ supply base in Harare and are being prepared for deployment to Mukuyu-1 wellsite. Mukuyu-1 wellpad construction is nearing completion.
• Pre-gazettal administration process to increase SG 4571 permit area by sevenfold has been completed, awaits publishing in the Government Gazette.

In the early trading hours today, shares of independent upstream oil and gas company Invictus Energy Limited (ASX:IVZ) rose by over 12%, trading at A$0.18. With an hour’s trading left, the stock continued to be in the green zone. The trading volume was a whopping 3 million+ and the market capitalisation stood at A$122.9 million. Such positive sentiment seemed to have been propelled by a series of updates surrounding Invictus’ upcoming exploration campaign in Cabora Bassa basin.

Notably, Invictus is opening one of the last untested large frontier rift basins in onshore Africa, the Cabora Bassa Basin, in northern Zimbabwe through a high impact exploration program. It is preparing to soon commence drilling the Mukuyu-1 well, the first well in its potentially play opening two-well exploration campaign.

The Mukuyu-1 well will test multiple stacked targets within the greater Mukuyu structure which is independently estimated to contain 8.2 Tcf + 247 million barrels of conventional gascondensate (gross mean unrisked).

Key developments at Cabora Bassa

Invictus notified about key developments, integral to the drilling the first of two wells in the upcoming exploration campaign in the Cabora Bassa basin-

1. Exalo Rig 202 mobilisation commenced, long lead items arrive

The Exalo Rig 202 has commenced mobilisation from Songo Songo Island in Tanzania to Cabora Bassa. Earlier this year, Invictus executed a binding drilling rig contract with Exalo Drilling SA to drill the Mukuyu-1 exploration well. “The commencement of the rig mobilisation marks another milestone in the project”, says Managing Director Scott Macmillan.

The rig and associated equipment will arrive over the course of June. It will then begin to drill the first of two wells in Invictus’ upcoming exploration campaign in the Cabora Bassa basin.

Additionally, long lead items, including the casing, have begun arriving at the supply base in Harare. They are being prepared for deployment to the Mukuyu-1 wellsite.

Mud pump, Rig 202 equipment awaiting loading at Songo Songo Island jetty, Source- Company announcement, June 2022

Image description- Invictus Energy

2. Mukuyu-1 wellpad construction almost done

Finally, the Mukuyu-1 wellpad construction is nearing completion, after the finalisation of civil works including pad levelling and compaction, water supply and reservoirs. The concrete footings for the rig will be poured for curing ahead of the arrival of the rig to the wellsite.

Pre-gazettal administration process development

Besides key developments towards the upcoming drilling program, Invictus has been informed that the pre-gazettal administration process to increase the Special Grant 4571 (SG 4571) permit area by sevenfold has been completed. It now awaits publishing in the Government Gazette.

Notably, Invictus’ 80% owned subsidiary Geo Associates (Pvt) Ltd and the Sovereign Wealth Fund of Zimbabwe (SWFZ) executed a Heads of Agreement in March 2022 to increase SG 4571 licence area from 100,000 hectares to 709,300 hectares. Under the agreement, the SG 4571 licence and application area will be amalgamated with the SWFZ’s MSC003 Cabora Bassa South Reserved Area to cover the entire Cabora Bassa Basin.

SG 4571 expanded licence area map, Source- Company announcement, June 2022

Image description- Invictus Energy

Invictus has committed to drill a second well in the campaign to test the newly identified basin margin play. Details of the second well will be provided once the gazettal process has been completed.

“The enlarged SG 4571 licence provides us with a basin master position encompassing the entire Cabora Bassa Basin in Zimbabwe”, says Managing Director Scott Macmillan.

Invictus can unveil future discoveries on a large scale within the basin which will be transformational for it as well as the Republic of Zimbabwe. As developments continue to foster, Invictus is awaiting an updated Independent Prospective Resources Estimate incorporating the new CB21 Seismic results, to be released when completed.