Australian junior Invictus Energy received a welcome fillip from studies carried out on last year’s Mukuyu-1 wildcat in Zimbabwe, with data indicating the presence of light oil, natural gas condensate and helium.
Despite these positive findings, Invictus’ share price remained almost unchanged at A$0.12 (US$0.08).
Invictus’ original drilling operation hit well bore challenges and equipment problems which meant the company did not get all the information — fluid samples, in particular — that it wanted.
However, it is now preparing to start drilling a follow-up well on the same structure later this year, probably in July, using an upgraded drilling rig and new equipment.
Ahead of this operation, Invictus has been delving further into data derived from the original probe, with managing director Scott Macmillan saying: “Analysis shows the presence of light oil and rich natural gas-condensate, with condensate-to-gas ratios estimated at between 30 to 135 barrels per million cubic feet.”
He said these studies “definitively” prove the presence of hydrocarbons in multiple reservoir pay zones at Mukuyu-1, “consistent with wireline log interpretation, fluorescence, and elevated mud gas readings”.
The gas is said to contain less than 1% of carbon dioxide which would mean, if commercial volumes are found, it would require little processing.
In addition, analysis pinpointed the presence of helium — a very valuable gas — in commercial concentrations of about 0.1%, perhaps more.
Commercial production typically requires helium concentrations between 0.04% and 0.35%, said the operator
Invictus pointed out that the current long-term helium price is about $450 per thousand cubic feet, which is 50 to 100 times greater than typical long-term natural gas prices.
“We are extremely pleased with the results from the mudgas analysis which confirm our geological modelling of the Cabora Bassa basin. The presence of both light oil and gas-condensate provides us with confidence as we prepare for the drilling of Mukuyu-2 this year,” said Macmillan.
Invictus studied five samples of mud gas (which measures the amount of gas liberated from the sub-surface formations as the drill bit grinds through rock) from the Mukuyu-1 probe and its sidetrack well in some Upper Angwa reservoir units.
Source: https://www.upstreamonline.com/