Equus Energy Advances Pre-FEED on Equus Gas Project with Alcoa Funding Support

• Pre-FEED studies advancing tie-back development options
• Alcoa funding supports project study costs
• Domestic gas supply shortfall underlines project importance
• New General Manager appointed to drive corporate development
• Cash balance of $14.3 million at quarter end

Pre-FEED Progress Targets Capital-Efficient Development

Equus Energy (ASX:EQU) has pushed forward its pre-Front End Engineering and Design (pre-FEED) activities for the Equus Gas Project, aiming to capitalise on the project's strategic location near established North West Shelf LNG and domestic gas infrastructure. The company is refining two competitive tie-back concepts that leverage existing offshore platforms, pipelines, and processing hubs, intending to reduce upfront capital requirements and accelerate market entry.

This technical advancement builds on the company’s acquisition of the project in December 2025 and is focused on completing a Field Development Plan alongside detailed cost estimates and economic evaluations. The proximity to infrastructure supports a development pathway that could appeal to partners seeking lower-risk, cost-efficient gas supply options.

Partnering and Funding Framework Strengthened by Alcoa

Equus is preparing for a structured partnering process to facilitate project development, potential asset sell-down, and offtake agreements. This commercial groundwork is underpinned by a binding funding and gas sales agreement with Alcoa, which continued to contribute toward study costs during the quarter. The US$1.3 million advance received prior to this quarter has helped cover the majority of the $1.5 million spent on exploration and evaluation activities.

The Alcoa deal, first reported during Equus Energy’s ASX listing and backed by a $46 million conditional funding agreement, remains a cornerstone of the project’s commercial viability and development strategy. This relationship underlines the project’s potential to supply gas to both domestic and industrial customers, including large energy consumers like Alcoa. The company’s ongoing commitment to advancing the project was also reflected in the recent appointment of Joe Collins as General Manager – Corporate Development, bringing experience from Beach Energy and the Waitsia Gas Project.

Gas Market Dynamics Highlight Project Relevance

Market fundamentals continue to favour new gas supply sources, with the Australian Energy Market Operator forecasting a domestic supply shortfall in Western Australia emerging around 2030 due to declining legacy production and steady industrial demand. Equus Energy’s development strategy aligns with this outlook, positioning the Equus Gas Project to fill the looming gap by utilising existing infrastructure to deliver gas efficiently.

Geopolitical tensions affecting global LNG supply chains, notably disruptions around the Strait of Hormuz, have heightened the strategic value of stable Australian LNG exports. The project’s location within the North West Shelf, a mature and well-served gas province, enhances its appeal as a reliable supply source amid increasing global energy security concerns.

Financial Position and Operational Outlook

At the end of March 2026, Equus Energy held $14.3 million in cash, having spent $1.5 million on exploration and evaluation, primarily for pre-FEED activities. The company reported no substantive production or development activities during the quarter, consistent with its current study phase.

Payments to related parties, including directors’ fees, totalled $234,000 for the quarter. The company’s cash runway, estimated at nearly nine quarters based on current expenditure rates, provides a comfortable buffer to advance the project’s next stages.

Equus Energy’s progress follows its recent $46m Alcoa funding deal and builds on the momentum from its $15M ASX listing that secured the Equus Gas Project acquisition. These milestones set the stage for the company’s upcoming Field Development Plan and partnering initiatives.

Bottom Line?

Equus Energy’s focus on capital-efficient tie-back options and strong funding support positions it well to address looming gas supply gaps, but the success of its partnering process and final investment decisions remain key near-term catalysts.

Questions in the middle?

• How will the structured partnering process influence the project's capital structure and timeline?
• What impact will evolving domestic and global gas market dynamics have on Equus’s development strategy?
• Can Equus Energy leverage its proximity to existing infrastructure to secure competitive offtake agreements?