Equus Energy Limited launches a $15 million public offer to fund the acquisition and development of the Equus Gas Project in Western Australia, backed by conditional funding from Alcoa. The project boasts a large independently certified contingent gas resource, positioning the company to address looming supply shortfalls in domestic and LNG markets.
- 75 million shares offered at $0.20 each to raise $15 million
- Acquisition of Western Gas Corporation and its subsidiaries holding Equus Gas Project
- Equus Gas Project contains 1,702 Bscf gas and 38 MMstb condensate contingent resources
- Conditional funding agreement with Alcoa for up to US$30 million pre-FEED and FEED studies
- Listing on ASX contingent on acquisition completion and regulatory approvals
Equus Energy’s Strategic ASX Re-Entry
Equus Energy Limited is making a significant push to re-enter the Australian Securities Exchange (ASX) with a $15 million public offer, issuing 75 million shares at $0.20 each. This capital raise is designed to fund the acquisition of Western Gas Corporation Pty Ltd and its subsidiaries, which hold the Equus Gas Project, a substantial undeveloped gas resource located off the coast of Western Australia.
The Equus Gas Project is strategically positioned in the Northern Carnarvon Basin on the North West Shelf, approximately 200 kilometres northwest of Onslow. It boasts an independently certified 2C contingent resource of 1,702 billion standard cubic feet (Bscf) of gas and 38 million US stock tank barrels (MMstb) of condensate. This resource is among the largest undeveloped gas assets in the region, adjacent to Woodside’s Scarborough Gas Project, which is slated for first gas in late 2026.
Development Model and Market Opportunity
Equus Energy plans a modular, phased development approach leveraging existing offshore and onshore infrastructure to minimise capital expenditure and accelerate project delivery. The project is well placed to supply both Western Australia’s domestic gas market and the international liquefied natural gas (LNG) market, with opportunities to backfill existing processing infrastructure on the North West Shelf.
Western Australia faces looming gas supply shortfalls, with forecasts indicating a need for new supply from 2028 and significant deficits by the early 2030s. The Equus Gas Project’s timing aligns with these market dynamics, offering a potential solution to both domestic and export demand pressures.
Alcoa Partnership and Funding Conditions
In a notable development, Western Gas (70 R) Pty Ltd, a subsidiary within the acquisition, has secured a binding gas sales and funding agreement with Alcoa of Australia Limited. Alcoa has committed up to US$5 million in conditional pre-Front-End Engineering Design (pre-FEED) funding, with an option to contribute an additional US$25 million for Front-End Engineering Design (FEED). These tranches are contingent on the satisfaction of defined milestone gate conditions, underscoring the project’s developmental risk profile.
While this conditional funding provides a strong foundation, Equus Energy acknowledges the need for further capital to progress beyond the initial phases. The company’s ability to secure additional funding, negotiate infrastructure access, and obtain regulatory approvals remain critical dependencies.
Governance and Leadership
The company’s board is set to include experienced industry professionals, with Brendan Jesser as Non-Executive Chairman and proposed appointments of Will Barker as Managing Director and Andrew Leibovitch as Executive Director. Both Barker and Leibovitch bring extensive experience in large-scale gas project development and have significant interests in the project and related entities.
Equus Energy’s governance framework aligns with ASX Corporate Governance Principles, with a focus on transparency, risk management, and environmental, social, and governance (ESG) considerations. The company has adopted an ESG policy emphasizing environmental compliance, community engagement, workplace diversity, and ethical conduct.
Financial Outlook and Risks
Financial disclosures indicate that Equus Energy and Western Gas have incurred losses in recent years, consistent with early-stage exploration and development activities. The company does not provide earnings forecasts due to inherent uncertainties but outlines a clear use of funds focused on advancing the Equus Gas Project through technical, regulatory, and commercial milestones.
Investors should note the speculative nature of the investment, with key risks including acquisition completion, project development challenges, regulatory approvals, infrastructure access, and the need for additional capital. The company’s prospectus provides detailed risk disclosures and emphasizes the absence of guarantees regarding profitability, dividends, or share price performance.
Market Listing and Offer Structure
The public offer is complemented by secondary offers to Western Gas shareholders and noteholders, as well as options and performance rights issued to directors and management. Certain securities will be subject to escrow arrangements post-listing. The company aims to list on the ASX following the successful completion of the acquisition and capital raising, subject to regulatory approvals.
Overall, Equus Energy’s replacement prospectus presents a comprehensive and detailed roadmap for the company’s re-listing and project development, positioning it as a potential key player in Western Australia’s evolving gas supply landscape.
Bottom Line?
Equus Energy’s journey to ASX listing and Equus Gas Project development hinges on regulatory approvals, funding milestones, and infrastructure access, key factors to watch closely.
Questions in the middle?
- Will Equus Energy secure all necessary regulatory approvals and complete the Western Gas acquisition on schedule?
- Can the company successfully negotiate access to third-party infrastructure critical for project commercialisation?
- What are the prospects and timing for additional funding beyond the current $15 million raise and Alcoa’s conditional support?