Shares in oil and gas explorer Invictus Energy Ltd (ASX: IVZ) are having a stellar day in the green. At the time of writing, the Invictus Energy share price is trading 7.14% higher at 15 cents.
Invictus shares jumped from the open following a company announcement on its 80% owned Cabora Bassa project in Zimbabwe.
The preliminary results from surveys conducted at the site are promising according to Invictus. So let's take a walk through and see what the release said.
Image source: Getty Images
What did Invictus Energy announce?
Following the completion of a seismic survey conducted at the Cabora Bassa site in early November. The company finalised the survey after collecting almost 840km of high resolution 2D data for processing.
Preliminary assessment by the geophysicists at seismic data specialist EarthSignal revealed encouraging results.
Petroleum giant ExxonMobil (NYSE: XOM) – just Mobil at the time – also uncovered a robust dataset in the 1990s at the site, per the company. Invictus is asking EarthSignal to reprocess this legacy data as well.
The announcement is likely a positive step forward for Invictus, as it claims the Cabora Bassa project is "potentially the largest, undrilled seismically defined structure onshore in Africa".
Specifically, the results suggest a "clearly defined Muzarabini anticline structure and clear fault definition and deep reflectors below 4 seconds".
Additional studies show amplitude anomalies in the shallower section of the Muzarabini structure and also up against the basin fault.
It is here where Invictus reckons it could find hydrocarbon bearing traps, as the amplitude anomalies described can often be indicative of the presence of hydrocarbons, it says.
What did management have to say?
Invictus' managing director, Scott Macmillan was also encouraged by the results and is keen to progress forward in starting the upcoming drilling program scheduled for the first half of 2022.
Speaking on the announcement, Macmillan said:
Importantly, the initial processing results of the seismic acquisition has produced high quality data revealing a variety of structural and stratigraphic features providing for a target rich environment for the upcoming drilling program. The early indications from the preliminary seismic processing are very encouraging and particularly the strong amplitude anomalies observed in the Muzarabani structure and along the basin margin fault.
Macmillan continued:
While we look forward to the final processed products and interpretation of the entire CB21 Survey which will also enable better characterisation of the primary Upper Angwa target in the Muzarabani prospect, these initial results are encouraging as we progress with the selection of optimal drilling locations for the upcoming drilling campaign scheduled for 1H 2022.
The Invictus Energy share price has delivered the goods in the past 12 months, and has soared over 138% in that time.
It has also climbed almost 178% this year to date, a galaxy ahead of the benchmark S&P/ASX 200 index (ASX: XJO)'s return of around 16% in the last year.
