ZIMBABWE: ▪ Mukuyu-2 Sidetrack Wireline Operations Completed Signs MoU for Proposed 500 MW Gas to Power project

Progress and current operations
Since the last update where an additional gas discovery was made in the Lower Angwa following the
recovery of hydrocarbons to surface, wireline logging operations continued and have subsequently
been completed.

A comprehensive set of wireline logs have been gathered from the Mukuyu-2 sidetrack well including
rotary sidewall cores and a vertical seismic profile (VSP) which will allow for the calibration of log data
to fluid, core and seismic data.

Hydrocarbon fluorescence is observed in a number of sidewall cores (on surface areas of the core where
drilling mud is not present retrieved from reservoir sands in gas zones, including zones where downhole fluid samples were acquired and gas and liquid hydrocarbons were observed through the fluid analyser during sampling.

A total of 15 hydrocarbon samples were recovered to surface from the Upper and Lower Angwa
reservoirs. The sample bottles will now be shipped for laboratory sampling to confirm the hydrocarbon
composition of the of the recovered samples including condensate gas ratios (CGR).

Wireline log interpretation indicates a preliminary net pay estimate of 34.9m for the Mukuyu-2 well
across the Upper Angwa and Lower Angwa formations which is comparable to basin opening
discoveries made in the early stages of exploration in the Albertine Graben and Perth Basin plays.

Significant additional gross sands were intersected within the Upper and Lower Angwa gas legs but are
below the current net reservoir cut-off. The net-reservoir and hydrocarbon pay calculations are still
subject to further calibration with core and fluid data.

A total of 38 sidewall cores have been recovered from the Mukuyu-2 sidetrack well which sampled
reservoir and source rock intervals in the Upper and Lower Angwa and Pebbly Arkose.

These sand intervals may have better reservoir quality elsewhere in the Mukuyu field and, along with
the refinement to the net pay criteria, represent additional potential upside. Further appraisal activity
and technical evaluation of log, core, seismic and well test data is required to determine the full extent
of the resource size.

The discovery also bodes well for other prospects and leads in our large Cabora Bassa Basin acreage
position. The wireline logs suggest the Pebbly Arkose and Dande formations contain residual
hydrocarbons in Mukuyu-2. These formations present additional exploration potential that will be
targeted in future campaigns.

Forward Plan
The Mukuyu-2 sidetrack well is preparing to run the 7-inch liner which will allow for the well to be
suspended for future flow testing over this interval. This will also provide the opportunity to re-drill,
evaluate and test the remaining portion of the Lower Angwa, below 3,400mMD, in 6-inch hole in future

Over-pressured gas bearing reservoirs were encountered in this interval in the original Mukuyu-2
wellbore which are yet to be fully evaluated.

The Mukuyu-2 results will be integrated into the geological and geophysical datasets to inform future
exploration and appraisal activity across our extensive acreage portfolio.

Meanwhile, Invictus Energy reports that it has executed an updated Gas Supply MOU with Mbuyu Energy a Zimbabwean consortium led by IPP developer Tatanga Energy. The consortium, which includes existing Invictus’ institutional shareholder Mangwana Opportunities Fund for the supply of gas to their proposed 500 MW Gas to Power project.

The MOU is a precursor to the negotiation of a full Long Term Gas Sale Agreement to supply sufficient gas to power the proposed plant. The plant can be expanded in future phases to up to 1,000MW (equating to a forecasted demand of approximately 1.4 trillion cubic feet of natural gas over 20 years). The updated MOU will see the parties work together to assess the feasibility of developing the project utilising gas produced from the Mukuyu field or any other field developed in the Cabora Bassa project. The Power Project will be developed in line with world class standards and will support the further integration of renewable sources of energy into the National Grid.

The development of the Gas to Power Project will be synchronized with the broader development of the Mukuyu field and the Cabora Bassa project as a whole including gas production, transportation and the processing infrastructure required to provide natural gas feedstock to the power plant.

Preliminary feasibility studies have identified a number of suitable locations that provide the ability to supply electricity through the local grid as well as potentially export to customers through the Southern Africa Power Pool (SAPP). The Mukuyu gas field is located within 100 kilometres of 3 major interconnectors to the SAPP grid which provides the ability to export power to any country in the region.

Mbuyu will enter into discussions with a number of existing high energy demand power offtakers including large scale miners, industrial and other large scale users of energy – many of whom currently import their electricity from neighbouring countries. The project will supply much needed reliable and affordable baseload power to these companies.

This is the second major Gas Sale MOU executed for the Cabora Bassa project following the MOU executed with Sable Chemicals to provide gas feedstock for the manufacture of ammonium nitrate fertiliser which is currently supplied by rail from South Africa.

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