No discovery as Invictus Energy (ASX:IVZ) ends operations on Mukuyu-1

• Invictus Energy (IVZ) is ceasing operations on Mukuyu-1 and ST1 after conditions were deemed ‘unsuitable’ and ‘not feasible’
• Difficulties encountered during drilling included breakage of a T Bar Clamp as workers attempted to retrieve the wireline formation testing tool, which was later damaged in the process
• The company will now demobilise the well services equipment and personnel
• Invictus has extended its drill rig contract for a further year as it plans to drill either Mukuyu-2 or Baobab-1 this year
• Invictus shares tumbled 50 per cent to 14.5 cents at 12:15 pm AEDT

Invictus Energy (IVZ) will end operations on Mukuyu-1 and ST1 and demobilise well services equipment and operators after conditions were deemed ‘unsuitable’.

Difficulties during drilling included breakage of a T Bar Clamp during attempts to retrieve the wireline formation testing tool, which was later damaged in the process.

Invictus says further attempts to obtain a fluid sample were ‘not feasible’ and the Exalo Rig 202 would be warm stacked for maintenance and upgrades before further drilling at either Mukuyu-2 or Baobab-1 this year.

The company has extended its contract for the rig for another year to continue drilling wells in the Cabora Bassa Basin, in Zimbabwe.

Despite the recent issues, Invictus says results from the initial Mukuyu-1 and side track well provided confidence.

Managing Director Scott Macmillan said Mukuyu-1 and sidetrack well had multiple gas zones and potentially liquid hydrocarbon-bearing intervals had been interpreted from wireline logs and drilling.

“Whilst we are frustrated with the numerous operational challenges encountered and not being able to obtain a fluid sample which would have enabled the formal declarations of a discovery, we have still achieved a hugely significant result from the first well in the basin which has substantially de-risked our dominant acreage position and established a new petroleum province,” he said.

“We have gathered a high quality dataset across the Mukuyu-1 and sidetrack well which will now be integrated with the existing seismic data to calibrate and refine our interpretation and plan for the appraisal of Mukuyu as well as additional prospects in the basin.

“We are particularly encouraged with the Upper Angwa Alternation Member horizon which proved up the hydrocarbon potential over a 900 metre gross interval with elevated gas shows up to 135 times above background and fluorescence to TD (total depth) and still contains deeper untested potential and a further 300 metres of up dip potential at the crest of the structure.”

Invictus shares tumbled 50 per cent, to 14.5 cents at 12:15 pm AEDT.