A message from the Managing Director
In February, the Company commenced preparations for the Mukuyu-2 appraisal campaign and Cabora Bassa Phase 2 exploration program.
The Mukuyu-2 appraisal well is anticipated to spud early in the third quarter of the year and will incorporate valuable experience gained from the drilling of the successful Mukuyu-1/ST1 exploration well, with the aim of confirming a gas-condensate discovery.
The well will target multiple hydrocarbon (gas-condensate and potentially light oil) bearing intervals encountered in the Mukuyu-1/ST1 well in the Upper Angwa and Pebbly Arkose formations.
It will also be designed to test the deeper potential in the remaining Upper Angwa formation, which was not encountered in the initial exploration campaign due to it being thicker than pre-drill estimates.
Mukuyu-2 will be designed to allow for flow testing to confirm reservoir deliverability and connectivity, following a successful discovery.
Tendering for minor additional long leads and well services for Mukuyu-2 has already commenced and I look forward to providing further updates as contracts are awarded and the spud date is firmed up.
We also continue work to progress exploration of the frontier Cabora Bassa Basin, with a fresh 2D seismic campaign scheduled to kick off next month.
The 2D shoot will focus on the eastern portion of EPO 1848 & 1849 to mature multiple leads along the proven play on trend and to the east of Mukuyu, as well as additional leads along the highly prospective Basin Margin play, already identified on vintage seismic data.
This modern 2D seismic data will likely allow us to mature a number of these leads to drillable prospects, providing additional running room and adding materially to the Company’s exploration portfolio.
To help fund preparations for the appraisal and exploration work, Invictus successfully raised $10 million via a placement to sophisticated and institutional investors.
The Placement was oversubscribed and cornered by long-term investor Mangwana Capital, as well as a number of local Zimbabwe partners and the Board.
Existing shareholders will also be invited soon to participate in a Share Purchase Plan on the same terms as the Placement.
In my previous update, I welcomed the addition of Non-Executive Chairman John Bentley and Non-Executive Director Robin Sutherland to the Board, and I am pleased to report they have hit the ground running.
Both John and Robin joined the rest of the Board on a visit to our operations in Zimbabwe and to meet with Government officials and local stakeholders.
The visit was a great success and we continued to make progress on a number of key items, including the Production Sharing Agreement for the Cabora Bassa Project.
With exploration of the Cabora Bassa Basin now substantially de-risked following the success of the Mukuyu-1/ST1 well, which confirmed a working petroleum system in the basin, the coming months are shaping up to be exciting for Invictus and its shareholders.