\u2022 Fluorescence and elevated gas shows of up to 65 times above background levels in
\nUpper Angwa primary target
\n\u2022 Elevated gas shows and resistivity in shallower Pebbly Arkose formation
\n\u2022 Working conventional hydrocarbon system confirmed in Cabora Bassa Basin
\n\u2022 Preparing to drill ahead to planned total depth of 3,500 mMD<\/p>\n
Comments from Managing Director Scott Macmillan: Progress and current operations<\/strong> Elevated mud gas peaks (up to 65 times above background gas baseline) have been observed while drilling through a depth of 3,070 mMD with marked increases from C1 to C5 compounds (methane, ethane, propane, butanes and pentanes)<\/p>\n An initial 100 per cent fluorescence was also observed in a downhole cuttings sample of Logging While Drilling (LWD) analysis has identified further shallower zones of interest within the Upper Angwa, with elevated mud gas readings and LWD resistivity being observed. Drilling progress towards total depth has been slower than anticipated due to challenging
\n\u201cEarly indications in our Upper Angwa primary target are highly encouraging and have proven a conventional working hydrocarbon system in the Cabora Bassa Basin, which is an exciting development validating our subsurface model.<\/em>
\n\u201cThe presence of elevated mud gas readings, fluorescence in the cuttings, elevated LWD resistivity and increasing background gas with depth is a positive sign as we progress through the Upper Angwa Alternations Member.<\/em>
\n\u201cWe still have several hundred meters of drilling through our primary targets with additional potential, which will be followed by a comprehensive wireline logging programme to evaluate results, with the aim of confirming the presence of moveable hydrocarbons in multiple zones.\u201d<\/em><\/p>\n
\nSince the last update, the 8\u00bd\u201d hole section has been drilled to a depth of 3,086 metres
\nMeasured Depth (\u201cmMD\u201d).<\/p>\n
\nsandstone, retrieved from a depth of approximately 3,070 mMD, indicating the presence of condensate or light oil when placed under an ultraviolet light<\/p>\n
\nAdditional potential zones of interest in the Pebbly Arkose and Forest formations also display elevated LWD resistivity.
\nHowever, due to multiple equipment failures of the gas chromatograph systems, mud gas
\ncomposition data is not available at depths shallower than approximately 2,820 mMD through the Dande, Forest and majority of the Pebbly Arkose horizons.
\nIncreasing background gas with heavier hydrocarbon components has been observed with the increase in depth since the repair of the mud gas chromatograph system.
\nAll zones of interest will be comprehensively evaluated through a planned wireline logging programme, which will take place once Mukuyu-1 reaches total depth and will allow for the identification of any potential hydrocarbon pay.<\/p>\n
\nconditions in the Pebbly Arkose, where several loss zones were encountered, requiring
\nremedial action to stabilise drilling fluid losses.
\nDrilling conditions subsequently improved in the Upper Angwa formation prior to the failure of the stator in the downhole drilling motor.
\nThis has necessitated the changeout of the downhole drilling motor before drilling can
\ncontinue through the Upper Angwa formation towards a planned total depth of approximately 3,500 mMD.<\/p>\n