Mukuyu-2 to be drilled in Q3-2023. What else is IVZ up to?

This morning our 2020 Energy Pick of the Year Invictus Energy (ASX: IVZ) updated the market with what to expect from the company in 2023.

Our key takeaways from the announcement are as follows:

1) Analysis of Mukuyu-1 ongoing - IVZ continues to develop its understanding of the Mukuyu structure.

Analysis of drillcores from the Mukuyu-1 well is still ongoing. Recent results show fluorescence at ~2,407m depth in the upper Pebbly Arkose reservoir sections.

Importantly this is all new data for IVZ given no fluorescence was observed in these sections during the drill program. The gross interval IVZ is working with across its two primary targets is now ~1,500m long.

All of the analysis work will feed into IVZ's basin model which will help with well designs in the future.

2) IVZ outlined its next well - IVZ confirmed it would look to drill the Mukuyu-2 appraisal well in Q3 of 2023.

IVZ has already started preparing for the drilling of the Mukuyu-2 appraisal well in early Q3-2023.

The appraisal well will take into account all of the learnings from the Mukuyu-1 drill program so that the well design is optimised for success. Interestingly, IVZ also said the well would be designed in a way where flow testing could be done to confirm "reservoir deliverability and connectivity following a successful discovery".

IVZ already has permitting/approvals in place and will be able to begin mobilising the Exalo drill rig to its well location immediately after the Zimbabwe wet season. With the well "warm-stacked", the company won't need to go through the mobilisation process, hence the short lead time (Q3-2023).

Interestingly, IVZ also confirmed that it has started receiving "interest from industry partners" and is considering a farm-down in the lead-up to the Mukuyu-2 well.

Whatever happens, we look forward to the Mukuyu-2 well and hope IVZ can officially declare a discovery.

3) Exploration at other drill prospects - 2D seismic acquisition program planned across the company's remaining drill prospects.

Finally, IVZ will also run a 2D seismic acquisition program over the central fairway prospects across its acreage.

The seismic surveys are planned to commence in Q2-2023. Below is an image of the prospects IVZ will be running surveys over.

With IVZ outlining its forward exploration plan, we have begun preparing our new IVZ Investment Memo — be on the lookout for this over the coming weeks.