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This is why Invictus Energy stock is riding high today

Summary

  • A 2D seismic campaign is expected to commence in July at Invictus Energy Limited’s (ASX:IVZ) 80%-owned and operated Cabora Bassa Project in Zimbabwe.
  • The seismic acquisition contractor, Polaris Natural Resources, is currently mobilising personnel to Zimbabwe and recruiting around 100 local employees.
  • Aztech Well Construction has been appointed as Drilling Project Manager for the upcoming basin opening drilling program.
  • The SG 4571 tenure renewal has been formally gazetted for three years to June 2024.

Around market close on 25 June 2021, the stock of oil and gas explorer Invictus Energy Limited (ASX:IVZ) traded up by nearly 10% at A$0.170 with a volume of over 2 million shares. The uptick followed an upbeat market update about Invictus’ 80%-owned and operated Cabora Bassa Project in Zimbabwe.

ALSO READ: What’s in store for Invictus Energy?

The Cabora Bassa Project encompasses the Mzarabani Prospect, potentially the largest, undrilled seismically defined structure onshore Africa. The Special Grant 4571 also contains the Msasa conventional gas-condensate prospect.

Copyright © 2021 Kalkine Media, Source: Company reports

Let us skim through the recent update on the Project development-

Seismic campaign development

Invictus wishes to conduct, process, and interpret a minimum of 400 line kms of 2D seismic to refine the Muzarabani-1 drilling location and well path. It also aims to identify additional prospectivity for the upcoming drilling campaign.

Notably, the proposed seismic survey will be conducted with a minimal environmental footprint and use existing roads and tracks (where possible). Below is the timeline:

  • The camp construction will commence before the end of June 2021.
  • It is expected to be completed in early July 2021.
  • The seismic campaign is estimated to officially commence in July 2021 with line clearing operations, followed by seismic data acquisition.

Mobilising personnel to Zimbabwe

In April 2021, Invictus awarded the seismic acquisition contract to Polaris Natural Resources Inc. Finally, Polaris has received work permits for their expatriate staff. They have begun mobilising personnel to Zimbabwe to start the 2D seismic campaign. The personnel are expected to arrive in the next few days.

Besides, vibroseis units and recording equipment are also in transit to Zimbabwe currently.

READ MORE: Polaris to support Invictus Energy’s first 2D seismic program at Cabora Bassa

Recruitment of local employees

Invictus is currently helping Polaris with the recruitment of up to 100 local employees. Likely to belong to local communities, these employees will be part of the seismic campaign.

Drilling Project Manager appointed

Invictus has appointed Aztech Well Construction as Drilling Project Manager for the upcoming basin opening drilling program. Aztech is a well project management company, well versed in onshore and offshore drilling projects.

The plan for the drilling campaign is advancing well. For instance, the preliminary Basis of Well Design (BoWD) has been completed. This is likely to facilitate ordering long lead drilling items (casing and wellheads) for fabrication. The BoWD will be additionally refined and finalised after the seismic processing and interpretation concludes.

Copyright © 2021 Kalkine Media

GOOD READ: Invictus Energy riding high on capital raising, PEDPA; what next?

Rig contractor to be appointed soon?

Invictus has received strong interest from various drilling rig contractors to provide a rig for the campaign. Aztech, too is concluding the technical evaluation of the rig contractor options. Soon, a formal process to shortlist and select a rig for the campaign can be expected.

SG 4571 tenure extended

Besides developments proceeding well on the operations end, Geo Associates (Private) Limited, Invictus’ 80%-owned subsidiary and holder of Special Grant 4571 was notified about the extension of the tenure for a three-year period to 17 June 2024 by the official Zimbabwean Government Gazette.

The extension has been granted by the Minister of Mines and Mining Development under the authorisation of the President, in line with section 301 of the Mines and Minerals Act.

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All in all, Invictus’ exploration program is progressing well. The seismic acquisition campaign is about to officially commence, preparations for the drilling campaign are advancing well, and there has been an overwhelming response in the local recruitment exercise. Besides, Invictus is in a great position to secure an optimal rig for the drilling campaign at attractive rig rates.

INTERESTING READ: How Mangwana Opportunities Fund can expedite Invictus Energy’s growth

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