Invictus Energy signs MOU for gas-to-power project

Invictus Energy Limited (ASX: $IVZ) has executed a Memorandum of Understanding (MOU) with Dallaglio Investments Pvt Ltd and Himoinsa Southern Africa Proprietary Limited for a proposed gas-to-power project to supply electricity to the Eureka Gold Mine in Zimbabwe. The project aims to determine the optimal delivery of power through wellsite power generation and wheeling power utilizing the existing grid infrastructure or onsite generation with natural gas delivered via truck between wellsite and Eureka Gold Mine.

Executive commentary on gas-to-power project

Signing this MOU is a major step forward in our early commercialisation strategy and demonstrates the immediate monetisation opportunities available to Invictus as we look to progress the Cabora Bassa project following our significant gas discovery at Mukuyu. We are pleased to be partnering with one of the largest gold producers in the country in Dallaglio and one of the leading power generation solutions companies in Himoinsa for our planned pilot project. Eureka's close proximity to Mukuyu and available infrastructure make this an ideal pilot project and provides us with line of sight to early first production, revenue generation and proof of concept for future full field developments and large-scale gas-to-power projects. The high quality gas composition confirmed from Mukuyu-2 requires minimal surface processing of gas stream, which enables the implementation of a near-term pilot project utilizing a low-cost production system at the wellsite and existing infrastructure to deliver gas and power to end users. We look forward to working closely with Himoinsa and Dallaglio to completing the feasibility study over coming months in tandem with our high impact field activity to progress the project into implementation.

Summary of gas-to-power project announcement

Invictus Energy Limited has signed a Memorandum of Understanding (MOU) with Dallaglio Investments Pvt Ltd and Himoinsa Southern Africa Proprietary Limited for a proposed gas-to-power project to supply electricity to the Eureka Gold Mine in Zimbabwe. The project includes a feasibility study to determine the optimal delivery of power through wellsite power generation and wheeling power utilizing the existing grid infrastructure or onsite generation with natural gas delivered via truck between wellsite and Eureka Gold Mine. The company aims to capture early monetisation opportunities and accelerate timelines to first production and revenue generation. The pilot project using a simple early production system will provide near-term monetisation and proof of concept for future full field developments. The power generated would be supplied to Eureka or other private off-takers through the local grid or into the Southern Africa Power Pool if excess supply is available. The MOU provides flexibility to grow the pilot project incrementally through modular expansion as the resource base grows and additional power offtakers are signed up. The feasibility study will also assess the use of Mukuyu-2 as a producer in the pilot project. The project aims to provide Eureka with a reliable and cleaner source of energy than the current coal fired power and backup diesel power generation. The company is positioning itself to capture early monetisation opportunities and accelerate timelines to first production and revenue generation.