- Invictus will keep the Exalo 202 rig on-site the Cabora Bassa Basin for 2 years
- The same rig has been Invictus’s main rig on-site in recent history
- The contract scope includes future wells
- Shares last traded at 17c
Invictus Energy (IVZ) shares are up 3 per cent in the first half hour of trades as the company confirms the Exalo 202 rig it’s used most of the year will remain on-site for 2 years.
As part of the contract, future wells will be drilled by the rig so far best suited to plugging away at the acreage on-site.
Optional and test wells also stand out as possibilities.
Invictus as microcap darling
For the uninitiated, Invictus Energy has long been a microcap investor favourite.
The company boasts a potentially trillion-cubic-feet-plus gas resource in Zimbabwe, though, much of this is in a lower-confidence ranking.
But that has done little to turn investors off the company – it’s consistently one of the most watched stocks on Australian market forum HotCopper.
“The highly encouraging results to date from our drilling programs have provided the Company with the confidence to keep Rig 202 stacked at the Mukuyu-2 location,” the company wrote on Friday.
Management comment
Invictus Energy chief Scott Macmillan – typically referred to as “Scotty” – outlined that the contract allows for greater autonomy of operations.
“The contract amendment … provides us maximum flexibility to accelerate and execute future drilling and testing campaigns,” MacMillan said.
“The retention of the rig will result in substantial time and cost savings to the Company compared to demobilising and remobilising a drilling rig for future.” campaigns.
The company hit total depth of its Mukuyu-2 gas well in late October.
IVZ shares last traded at 17c.