Ann: Mukuyu-2 Drilling Update, page-107

”Casing is being set above the first zones we encountered hydrocarbons in Mukuyu-1” - I assume they are referring to the 3m gross pay that was intersected at 2456m - 2459m in the PA at MK-1. They’ve potentially drilled around 226m of the PA already but may not have entered the top amalgamated channel just yet. I’d be interested to know if the higher background gas and C4-C5 shows were continuing at the base of the 12-1/4” hole before they called TD. This could bode well for what they’ll punch into as soon as they start drilling the 8-1/2” hole. They only use the wording that these were seen “above the primary targets in the Upper Angwa” which could be the Dande or it could be through the entire hole section?

And just a note on the Dande - in all of the very early Invictus presentations, the MK-2 location was where they initially planned to drill the first exploration well (and is the same location that Mobil selected prior to that). They only changed to the MK-1 location further to the South in order to intersect the Dande at a more optimal location. So in reality this location was always going to be a riskier location for the Dande and was the reason they shifted to MK-1 in the first place. So todays news makes sense in a way based on that.

But on the flip side, the MK-2 location was always expected to be a better location for the Upper and Lower Angwa. And nothing has changed there based on today’s update. If anything things are looking more positive with higher background gas and the heavier C4-C5 shows which are hopefully pointing towards oil and condensate deeper down.

Also good to know that any issues with an ineffective seal in the Dande doesn’t translate to the Upper Angwa given that they have their own alternating seal layers.

Big week or two coming up. Would have liked a webinar from Scott to talk through the update like last year though.