Highlights

• Equus Energy completed pre-FEED work for its offshore WA gas project, confirming two potential tie-back development options targeting approximately 350 MMscf/d gross capacity, around 2 Mtpa of LNG and domestic gas supply potential.

• The company’s Equus Gas Project holds a 2C contingent resource of 1,702 Bcf of gas and 38 million barrels of condensate across permits WA-390-P, WA-474-P and WA-70-R.

• Equus Energy reported cash of A$14.32 million as at 31 March 2026, with no equity raising completed since its A$15 million IPO in December 2025.

• The company strengthened its board in July 2026 with Grant Davey appointed as non-executive chairman and Michael Barnes joining as an independent non-executive director.

• Equus Energy shares closed at A$0.29 on 28 July 2026, down A$0.015 or 4.92% during the session.

Equus Energy Limited (ASX:EQU) has progressed its offshore gas development strategy after completing pre-front-end engineering and design (pre-FEED) work for its Equus Gas Project in Western Australia. The study evaluated development pathways for the company’s large offshore gas resource and confirmed that the project could potentially be developed through existing infrastructure connections rather than requiring a standalone greenfield LNG facility.

The company’s Equus Gas Project is located approximately 200 kilometres north-west of Onslow in the northern Carnarvon Basin. Equus acquired the project from Hess Corporation in 2017 and listed on the ASX in December 2025 following a A$15 million initial public offering.

During 2026, Equus reached two key milestones: the completion of its pre-FEED study in May and a board restructure in July aimed at supporting the next stage of project development.

Pre-FEED Confirms Multiple Development Options

On 13 May 2026, Equus announced positive pre-FEED results, stating that the project demonstrated technical feasibility, commercial potential and a capital-efficient development approach.

The study identified two potential tie-back options:

  • Connection to Woodside-operated Pluto LNG infrastructure.
  • Connection to the Santos-operated Varanus Island hub.

Both options could provide access to LNG export markets and Western Australia’s domestic gas market.

The proposed development concept includes up to five subsea wells during initial production, supported by a permanently moored floating production, storage and offloading facility. Gas would be transported through new export infrastructure connected to existing subsea facilities.

The company estimated potential gross production capacity of approximately 350 MMscf/d, equivalent to around 2 Mtpa of LNG, approximately 50 terajoules per day of domestic gas supply and around 12,000 barrels per day of condensate at start-up.

The project concept is based on an expected operating life of approximately 15 years.

Board Restructure Targets Commercial Development Phase

Equus Energy refreshed its leadership team in July 2026 as it moves from technical assessment towards commercialisation discussions.

Grant Davey was appointed non-executive chairman, replacing Brendan Jesser, while Michael Barnes joined the board as an independent non-executive director.

Michael Barnes previously served as Western Australia’s Under Treasurer for more than eleven years until April 2025 and currently holds leadership positions across infrastructure-related organisations.

Brendan Jesser retired as chairman and director, while Chris Bath stepped away from the board but continues in his role as chief financial officer and company secretary.

The company has not disclosed a final investment decision timeline, capital cost estimate or confirmed date for moving into FEED.

Understanding the Equus Gas Project

Equus Energy remains a pre-production gas developer with its valuation primarily linked to the future development of its offshore resource.

The company owns 100% of the Equus Gas Project, covering permits WA-390-P, WA-474-P and WA-70-R.

Independent resource assessment by RISC in October 2025 estimated a 2C contingent resource of 1,702 Bcf of gas and 38 million barrels of condensate, representing approximately 320 million barrels of oil equivalent.

While the resource size provides significant development potential, the volumes remain classified as contingent resources rather than reserves. Conversion into reserves requires further commercial progress, including development approval, financing arrangements and access to infrastructure.

Equus has positioned its strategy around a capital-light model by using third-party LNG infrastructure and securing development partners rather than constructing its own processing facilities.

The company’s agreement with Alcoa provides conditional staged funding of up to US$30 million towards pre-FEED and FEED activities through to a final investment decision. In return, Alcoa has secured access to approximately 50 TJ/d of gas supply for ten years, subject to project development.

Financial Position and Funding Outlook

For the half year ended 31 December 2025, Equus Energy reported a loss after tax of A$9.4 million compared with A$1.1 million in the prior corresponding period.

The higher loss reflected listing-related costs, acquisition expenses and evaluation expenditure associated with advancing the Equus Gas Project.

The company recorded other income of A$1.42 million, primarily linked to Alcoa funding arrangements.

Cash increased to A$16.5 million at 31 December 2025, compared with A$0.1 million at 30 June 2025, following completion of the IPO.

The March 2026 quarterly report showed cash of A$14.32 million, with net operating cash outflow of A$1.883 million. Evaluation payments accounted for A$1.522 million of expenditure during the quarter as the company progressed pre-FEED activities.

No capital raising has been announced following the December 2025 IPO. However, future development stages, including FEED and construction, are expected to require significant external funding, strategic partnerships or additional capital support.

Why the Project Matters for Western Australia’s Gas Market

Equus Energy is targeting a potential supply opportunity as Western Australia’s domestic gas market faces increasing pressure from declining legacy production.

The company’s ability to maintain two potential infrastructure pathways provides flexibility during future commercial negotiations. Access to existing LNG and domestic gas infrastructure could reduce development complexity compared with building a standalone project.

The Alcoa agreement provides an initial domestic gas customer base, while the larger LNG component remains dependent on securing additional commercial arrangements, infrastructure access and development funding.

The board restructure indicates that Equus is preparing for a more commercially focused phase involving potential partners, infrastructure negotiations and financing discussions.

Potential Growth Catalysts

• Completion of the June 2026 quarterly report and confirmation of the company’s latest cash position.

• Progress in identifying an upstream development partner through the company’s partnering process.

• Agreement with infrastructure operators regarding processing or tie-back arrangements.

• Entry into FEED and publication of initial capital cost estimates.

• Additional LNG offtake agreements or domestic gas supply contracts.

Risks and Challenges

Equus Energy remains a pre-revenue company with a significant gap between its current financial position and the capital requirements of an offshore gas development. While the company had A$14.32 million in cash at 31 March 2026, the project will require substantial external funding to progress towards construction and production.

The Alcoa funding arrangement supports study activities but does not cover full project development costs. Future financing may require strategic partnerships, debt funding or equity dilution.

Infrastructure dependency is another key risk. While using existing LNG and domestic gas infrastructure reduces upfront costs, Equus remains dependent on third-party operators for access agreements and commercial terms.

The company also faces regulatory and execution risks associated with offshore developments, including environmental approvals, project timing and potential cost escalation.

What Investors Should Watch Next

The next important milestones for Equus Energy include confirmation of June quarter financial results, progress on partnership discussions and movement towards FEED.

Key indicators include:

• Cash balance and quarterly operating expenditure compared with previous periods.

• Progress of Alcoa funding contributions under the US$30 million facility.

• Any announced capital cost estimates or first production targets.

• Selection of a preferred infrastructure route.

• Development of additional gas sales agreements.

Conclusion

Equus Energy has moved its WA offshore gas project beyond the conceptual stage after completing pre-FEED work that identified two potential development pathways. The company’s large contingent resource base, infrastructure-led strategy and Alcoa-backed funding arrangement provide a foundation for further advancement.

However, the transition from technical feasibility to commercial development remains the critical challenge. Equus still requires additional partners, infrastructure agreements and significant capital before reaching a final investment decision.

The company’s next phase will depend on converting technical progress into binding commercial arrangements that can support project financing and future production.