Eastern Gas Corporation Ltd (ASX:EGA), an Australian Natural Gas exploration and development company focused on east coast domestic markets, announced on 25 September 2026 that it has signed a non-binding indicative term sheet with RiverFort Global Capital Ltd for a proposed Research and Development (R&D) Loan Facility of up to A$10 million.

Recent Development

On 25 September 2026, Eastern Gas announced the signing of a non-binding indicative term sheet with RiverFort Global Capital Ltd, which manages the investor(s) proposing to provide the funding. The proposed Facility is structured as an R&D loan to provide Eastern Gas with access to Working Capital ahead of receiving R&D tax incentive refunds. Key terms include an initial drawdown of up to A$1.5 million, subject to review of the company's R&D tax incentive position and regulatory approvals, with further drawdowns available up to an aggregate limit of A$10 million by mutual agreement. Each drawdown carries a 12-month term, repayable within five working days of receipt of the relevant R&D tax incentive refund or by the Maturity date regardless of refund timing. The fixed Interest Rate is 9% per annum, plus a 5% implementation fee on each drawdown, non-refundable Due Diligence and legal fees of A$10,000 and A$12,500 respectively (excluding GST), and an introducer fee of 2% payable to Spark Plus. Security would comprise a first-ranking interest over the company's R&D rebate receivables. In connection with each drawdown, Eastern Gas would issue unlisted Options to the Investor equal to 30% of the drawdown amount divided by the reference price (a 5-day VWAP), exercisable at a 40% premium and expiring 30 September 2029. The term sheet is non-binding except for due diligence, confidentiality, no-shopping and jurisdictional provisions.

Share Performance

EGA shares closed at AUD 0.16 on 25 September 2026, down 2.94% (-AUD 0.005) on the day. The decline may reflect market caution over the dilutive nature of option issuances embedded in the facility structure.

About the Company

Eastern Gas Corporation Ltd is an ASX-listed natural gas exploration and development company with two prospective tenements on Australia's east coast — in Queensland's Surat Basin (Walloon CSG fairway) and Cooper Basin. The company is focused on supplying reliable natural gas to east coast domestic markets.

Risks and Uncertainties

The term sheet is non-binding, and there is no certainty that definitive loan documentation will be executed or that any drawdown will occur. R&D tax incentive eligibility is subject to ATO assessment. The option issuances embedded in the facility — at 30% of each drawdown amount — create potential dilution for existing shareholders. The 9% fixed interest rate, combined with the 5% implementation fee and 2% introducer fee, makes this a relatively high-cost financing structure.

Catalysts to Watch

Execution of final binding facility documentation is the key catalyst. Receipt of the first R&D tax incentive refund and any guidance on its quantum would also be market-moving. Progress on the company's gas exploration activities in the Surat and Cooper Basins remains the underlying operational focus.

Final Word

The proposed R&D loan facility from RiverFort offers Eastern Gas a mechanism to monetise its R&D tax position ahead of receiving the actual refund — a useful working capital tool for a small-cap energy explorer. However, the cost structure and dilutive options are notable. Investors will be watching for whether binding documentation is executed before drawing any conclusions on the deal's merits.