Ann: Invictus Energy Webinar Technical Briefing, page-152

This is a very good presentation and I like the presentation slides about the seismic interpretation very much. Thank you IVZ for sharing with us.
I understand that IVZ highlights the positive points (and not the risks) . but for me it sounds almost like that it could be too good to be true because only 6% of the exploration wells in sub sahara ended up with a commercial development the last 10-15 years. For me the big risk is this seismic interpretation, especially because this is the first deep exploration well in this rift basin. DHI were presented in the webinar as strong hints that we got gas there. But direct hydrocarbon indicators (DHIs) can delude. I marked the risks I see in the seismic interpretation of the webinar

"DHIs exploration can be very challenging and can result in failed wells. Some possible reasons for failure may be:

• Problem in differentiating the wells with gas buildups and wells with low-saturation gas (fizz gas), which are considered dry holes. These are principally costly due to their locations and lack of infrastructure.
  • Dry holes are often interpreted as false positives; which are often found in tight reservoirs and thick wet sands.
  • Low-saturation gas phenomenon is often related to a break in a reservoir seal and is due to residual gas that assemble a high amplitude effect similar to a commercial saturation.^[12]
• Flat reflections may be caused by unusual lithologic variations rather than fluid contacts.
• Rocks with low impedance could be mistaken for hydrocarbons, such as coal beds, low density shale, ash, mud volcano, etc.
• Polarity of the data could be incorrect, causing a bright amplitude in a high impedance zone.^[2]
• Superposition of seismic reflections and tuning effects.
• Signal contamination due to noise."

Seehttps://wiki.seg.org/wiki/Direct_hydrocarbon_indicatorsor google the DHI consortium.

IMHO for a more balanced view you should not write "the gas is there" after watching the webinar because seismic interpretation has got always risks. And as the term "interpretation" tells us - it is "just" an interpretation from somebody or a G&G team.

We will have to wait till the well is drilled down to the proposed targets but the risk of the seismic interpretation is the reason for the voliatil share price currently IMHO.