Invictus Energy Limited has announced that it is ceasing operations on Mukuyu-1 and ST1 in Muzarabani after conditions were deemed “unsuitable” and “not feasible”.
In a statement, the company said it encountered difficulties during drilling which included the breakage of a T Bar Clamp as workers attempted to retrieve the wireline formation testing tool, which was later damaged in the process.
It said it has extended its drill rig contract for a further year as it plans to drill either Mukuyu-2 or Baobab-1 this year.
Managing Director Scott Macmillan said that despite the numerous operational challenges encountered and not being able to obtain a fluid sample, the company had achieved a hugely significant result from the first well in the basin. He said:
We have achieved a fantastic result from the Mukuyu-1 and sidetrack well which has multiple gas zones and potentially liquid hydrocarbon bearing intervals interpreted from wireline logs and drilling.
We have a proven hydrocarbon system in the Cabora Bassa Basin as evidenced from significantly elevated gas shows and fluorescence during drilling and confirmed the presence of rich source rock, seal, reservoir, trap and timing.
Whilst we are frustrated with the numerous operational challenges encountered and not being able to obtain a fluid sample that would have enabled the formal declaration 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.
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 and fluorescence to TD and still contains deeper untested potential and a further 300 metres of updip potential at the crest of the structure.
The contract amendment executed with Exalo to keep Rig 202 for an additional 12 months underpins our confidence in the hydrocarbon prospectivity of the basin and will result in substantial time and cost savings to the Company compared to demobilising and remobilising the rig to and from East Africa for future drilling.
Furthermore, the stacking of the rig at Mukuyu-1 will allow Exalo to perform maintenance and upgrades of the rig prior to recommencing drilling of either Mukuyu-2 or Baobab-1 in 2023 whilst the Company sources necessary long leads, conducts tendering for well services and integrates the substantial information gathered into the geological model to determine future drilling locations.
We have gained a deeper understanding of the subsurface geology and valuable experience in drilling of the Cabora Bassa Basin which will allow us to optimise our plans, drilling fluids, equipment and services required for future campaigns.
Overall, the drilling campaign and Mukuyu-1 and sidetrack well have been a tremendous success.
We thank our shareholders and supporters for backing the Company to fund and sole risk the drilling campaign, the results of which have put us in a strong future position given the petroleum potential of the basin has been proven.
We have an exciting portfolio of additional prospects and leads which has been substantially de-risked in addition to Mukuyu.