Eastern Gas Corporation Limited is set to raise $5.5 million through an IPO to fund drilling and flow testing at its Queensland gas exploration permits, aiming to prove commercial viability in the Surat and Cooper Basins.
- IPO to raise $5.5 million via 27.5 million shares at $0.20 each
- 100% ownership of Queensland permits ATP 2051 (Venus) and ATP 927 (Windorah)
- Venus Project holds 130.3 PJ 2C Contingent Resources; Windorah Project holds 330.3 Bscf 2C Contingent Resources
- Funds allocated primarily for horizontal well drilling and flow testing at Venus
- Pure One Corporation Limited to retain majority 69.44% shareholding post-listing
Eastern Gas IPO Overview
Eastern Gas Corporation Limited has announced an initial public offering (IPO) aiming to raise up to $5.5 million by issuing 27.5 million shares at an offer price of $0.20 each. The capital raise is designed to fund critical appraisal drilling and flow testing activities at its two key Queensland gas exploration permits: ATP 2051, known as the Venus Project in the Surat Basin, and ATP 927, the Windorah Project in the Cooper Basin.
These permits represent significant gas resources with the Venus Project containing 130.3 petajoules (PJ) of 2C Contingent Resources and the Windorah Project holding 330.3 billion standard cubic feet (Bscf) of 2C Contingent Resources. Both projects are at an appraisal stage, with commercial flow rates yet to be demonstrated.
Project Details and Strategic Focus
Eastern Gas was incorporated in October 2025 as a spin-out from Pure One Corporation Limited, which will remain the majority shareholder with approximately 69.44% ownership post-listing. The company’s immediate focus is on the Venus Project, where funds from the IPO will be directed towards drilling and flow testing of horizontal wells targeting the Upper Juandah Coal Measures, a key coal seam gas (CSG) reservoir.
The Venus Project lies within the prolific Surat Basin, adjacent to established infrastructure including major pipelines and processing facilities. Despite previous vertical wells flowing gas to surface, commercial flow rates have not yet been achieved, prompting Eastern Gas to pursue horizontal drilling techniques supported by an independent technical report from Molyneux Advisors Pty Ltd.
Meanwhile, the Windorah Project in the Cooper Basin is a basin-centred gas play with potential for commercial development pending successful fracture stimulation and flow testing. The project benefits from a recent declaration as a Potential Commercial Area (PCA), extending its permit term and providing a pathway for future development.
Financial and Corporate Governance Considerations
The IPO proceeds, combined with existing cash reserves, are expected to provide sufficient working capital for the company’s planned exploration activities over the next two years. The company acknowledges the speculative nature of its business and the need for additional capital beyond the IPO to progress to production, which may involve equity or debt financing.
Eastern Gas has appointed Securities Vault as lead manager for the offer, with fees structured around funds raised and options issued. The company’s board comprises experienced industry professionals, including Chairman James Canning-Ure and Managing Director David Spring, supported by a robust corporate governance framework aligned with ASX recommendations.
Risks and Regulatory Environment
Key risks highlighted include the pending renewal of ATP 2051, technical challenges in achieving commercial gas flows, and the company’s limited operating history. The company must also navigate environmental and native title considerations, with comprehensive legal due diligence confirming good standing of permits and compliance with relevant regulations.
Investors are cautioned that the success of Eastern Gas’s projects depends on proving commercial viability through drilling and testing, and that the shares offered are highly speculative. The company’s substantial shareholder, Pure One Corporation, retains significant control, which may influence corporate decisions.
Bottom Line?
Eastern Gas’s IPO marks a pivotal step towards unlocking Queensland’s gas potential, but drilling results and permit renewals will be critical milestones to watch.
Questions in the middle?
- Will Eastern Gas successfully renew ATP 2051 and secure long-term tenure?
- Can horizontal drilling and flow testing at Venus deliver commercial gas flow rates?
- What are the company’s plans for funding beyond the IPO if initial exploration is successful?