- Invictus Energy’s (ASX:IVZ) Mukuyu-2 well has been drilled to total depth
- The company last week confirmed gas-bearing geology underground
- Whether the well has hit a commercial-scale deposit isn’t yet confirmed
- Shares last traded at 20.5 cents
Zimbabwe-based gas explorer Invictus Energy (ASX:IVZ) has reported another update on its highly anticipated Mukuyu-2 well, with a downhole total depth of 3360 metres now reached.
At the end of last week, the company posted further evidence that gas-bearing underground geology is potentially commercial in scale.
That announcement led to some enthusiasm – the stock’s one-week returns are currently up 22 per cent.
“Since the last update where a gas discovery was made in the Upper Angwa following the recovery of hydrocarbons to surface … the well has reached 3360 metres Measured Depth,” the company wrote today.
“Multiple zones were encountered in the Lower Angwa with strong gas shows and fluorescence observed with marked increases from C1 to C5 compounds (methane, ethane, propane, butanes and pentanes).”
Retail favourite
Invictus is a retail trader market favourite and is one of the most watched microcap explorers. A scan of the HotCopper forums, basically any time it announces anything, confirms this.
One user, writing of Mukuyu-2, described the asset as a “big dog about to bark.” That’s definitely the mood in the room surrounding Invictus.
Should that bark be loud enough, upward movement on the company’s share price could be significant.
Or, it could be disappointing. The company’s first Mukuyu-1 well, while always described as a solid asset with potential, ultimately turned up nothing and the company had to move on to Mukuyu-2.
Next moves
Invictus will now move ahead with more logging of downhole data in Mukuyu-2 with newsflow to come back to traders over the coming weeks.
Based on today’s announcement, it appears the well will be suspended ahead of flow testing in a manner that allows for drilling to continue.
“The completion of the sidetrack will also allow for the well to be suspended for future flow testing through running the 7-inch liner over this interval and retain the ability to drill, evaluate and test the remaining portion of the Lower Angwa,” the company wrote.
IVZ shares last traded at 20.5 cents.