Light Oil, Gas-Condensate and Helium confirmed for IVZ

Published 08-MAY-2023 12:00 P.M.

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This morning our 2020 Energy Pick of the Year Invictus Energy (ASX: IVZ) put out mudgas analysis results from its Mukuyu-1 well.

Here are our key takeaways from the announcement:

Hydrocarbons confirmed across multiple reservoir zones -

The results confirmed multiple reservoir pay zones at Mukuyu-1 consistent with the wireline log interpretation, fluorescence, and elevated mudgas readings.

Light oil and natural gas condensates present -

The results released today confirmed high quality natural gas with low “inert content” (less than 1% carbon dioxide).

The data is good news for the reservoirs in the context of processing, lower inert content means the gas is easier to process and more likely to be commercial.

Commercial helium grades intercepted -

The mud gas results returned helium grades up to ~0.1%.

The helium grades were completely unexpected but the positive is that the helium could be a valuable by-product for IVZ in a production scenario.

For context, long term helium pricing is currently at ~US$450 per thousand cubic feet - 50-100x the price of typical long term natural gas prices.

Here is everything we know about IVZ’s Mukuyu-1 well now:

✅ Gas readings 135x above background levels’
✅ Multiple (up to 13 in the sidetrack well) potential gas-bearing reservoir units.
✅ ~900m gross interval (225m in potential hydrocarbon bearing zones in one of the primary target areas (upper Angwa target).
✅ Multiple seals identified with several hundred-metre thicknesses above the deeper primary targets. This was a key risk going into drilling.
✅ Elevated (100%) fluorescence, indicating condensate or light oil.
✅ Elevated Logging While Drilling resistivity.
✅ Most importantly 🛢️A working conventional hydrocarbon system declared. 🛢️