Wellpad construction ongoing, drilling to start in July

This morning we came across this drone footage from our 2020 Energy Pick of the Year, Invictus Energy’s (ASX:IVZ) LinkedIn page, which shows the progress being made with wellpad construction works at the Mukuyu-1 drilling location.

With wellpad construction progressing, IVZ confirmed on the post that the drilling program was scheduled for July.

We first invested in IVZ in September 2020 as the company prepared to drill out one of the largest seismically defined, undrilled oil and gas structures in onshore Africa.

IVZ’s Mukuyu prospect has an independently estimated prospective resource of 8.2 trillion cubic feet (Tcf) + 247 million barrels of conventional gas-condensate.

For some context on the size of the target, the Bass Strait which has been supplying the bulk of domestic Australian gas needs had ~10 trillion cubic feet of gas reserves at its peak.

Since we first invested, IVZ has run a detailed 2D seismic program, reprocessing US$30M in seismic datasets leftover by Mobil who were the previous owners of the project in the 1990’s. All of this means that IVZ has significantly refined its drill targeting and is now ready to finally drill its elephant scale prospect.

With wellpad construction underway and drilling approximately two months away, we detailed what else we are waiting on from IVZ in our last note which you can view here: What’s next for IVZ (note dated 28 April 2022)

To see all of the reasons why we continue to hold IVZ in our portfolio check out our 2022 IVZ Investment Memo where you can also find the key objectives we want to see IVZ achieve in 2022 and all of the key risks to our investment thesis. Click here for the Memo.