Invictus doing a sidetrack well to try and obtain a fluid sample

Earlier this week our 2020 Energy Pick of The Year Invictus Energy (ASX: IVZ) announced that it would be completing a sidetrack well to its Mukuyu-1 well.

IVZ confirmed that it would be drilling parallel to its existing 3,923m deep well with the ultimate aim of obtaining a fluid sample so that the company can officially declare a new discovery.

IVZ expects this to take 12 to 18 days which means we should know whether or not IVZ can officially declare a discovery by Monday the 12th of December.

As with all small cap companies, timeframes can get stretched, but we think IVZ has made excellent progress towards declaring a discovery.

IVZ has now completed its drilling program down to a total depth of ~3,923m (deeper than planned initial 3,500m).

More importantly IVZ has a ~900m gross interval in the Upper Angwa formation which was one of IVZ’s primary targets.

Here is what we know from IVZ’s Mukuyu-1 well so far:

• ✅ A 10-15m interval indicative of potential hydrocarbons (oil and/or gas) across the first three of its targets.
• ✅ Seal identified with several hundred-metre thickness above the primary targets. This was a key risk going into drilling. This hopefully means there’s a geological seal that’s strong enough to trap oil and/or gas in the primary targets IVZ is drilling now.
• ✅ Elevated gas shows up to 135x above background gas levels through the first of two primary targets.
• ✅ Elevated (100%) fluorescence, indicating condensate or light oil.
• ✅ Elevated Logging While Drilling resistivity.
• ✅ A working conventional hydrocarbon system.
• ✅ ~900m gross interval in one of its primary targets. (NEW)

What is IVZ doing next?

• 🔄 Sidetrack well to be completed - This will be when IVZ will try to identify any moveable hydrocarbons and ultimately put out a “net pay” number. (NEW)

We are hoping IVZ is able to announce the results within the guided timeframe (by the 12th of December).