The Invictus Energy Ltd (ASX: IVZ) share price is tumbling on news of the company's exploration of its Mukuyu-1 well.
While there were plenty of positives in this morning's release from the upstream oil and gas company, the market appears to be hung up on one disappointing detail.
The Invictus Energy share price is currently trading for 26.5 cents, 15.87% lower than its previous close.
Let's take a closer look at the latest news from the $200 million energy stock.
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What's going so wrong for this ASX energy stock?
The Invictus Energy share price is plummeting this morning after the company announced its 80%-owned Mukuyu-1 Well will need to be sidetracked for evaluations to be completed.
Though, there appears to be plenty of good news accompanying the bad in today's release. Managing director Scott Macmillan commented:
The existing Mukuyu-1 wellbore was successfully deepened to 3,923 metres measured depth and continued to encounter multiple reservoir units with elevated gas shows and fluorescence until total depth, proving up the potential of the Upper Angwa formation over a 900 metres gross interval.
Our primary Upper Angwa target formation is thicker than anticipated from pre-drill estimates, which bodes well for future prospectivity in the basin.
However, when total depth was reached, the company found deteriorating borehole conditions. That meant tools needed to run wireline logs were unable to pass low enough. Macmillan continues:
Current borehole conditions make logging the existing hole section extremely risky with an increased likelihood of losing tools and not meeting the objectives of the well.
Thus, the Mukuyu-1 well will be sidetracked for future testing. That means the company will drill a secondary wellbore away from the original. Sidetracking is often used to bypass an unusable section or explore a nearby geological feature.
The remaining activities will likely take an extra 12 to 18 days. The company expects to provide more information in the coming weeks.
Invictus Energy share price snapshot
Fortunately, today's fall hasn't driven the Invictus energy share price into the longer-term red.
The stock is still 104% higher than it was at the start of 2022. It has also lifted 96% since this time last year.
Comparatively, the benchmark All Ordinaries Index (ASX: XAO) has slipped 6% year to date. It's also slipped 4% over the last 12 months.
