Highlights

  • Equus Energy (ASX:EQU) holds an independently certified 2C contingent resource of 1.7 trillion cubic feet of gas at its North West Shelf project.
  • A binding ten-year gas sales agreement with Alcoa provides a potential commercial foundation for the proposed development.
  • Pre-FEED work outlined an NPV of US$867 million and an internal rate of return of 31 per cent, although these remain study estimates rather than realised outcomes.
  • Entry into FEED, securing an operating partner and progressing toward a final Investment decision are among the key milestones ahead.

Western Australia's expected domestic gas Supply pressures have created a potential market opportunity for emerging gas developers, and Equus Energy (ASX:EQU) is positioning its North West Shelf project to address part of that demand.

The company was re-admitted to the ASX on 18 December 2025 and holds a 1.7 trillion cubic feet contingent gas resource. It also entered into a binding ten-year gas sales agreement with Alcoa in August 2026, providing a foundation customer as the project advances through its pre-development stages.

Latest Development

In updates released in early September 2026, Equus Energy (ASX:EQU) outlined its FY26 position and presented pre-FEED Economics for the Equus Gas Project.

The study work indicated a net present value of US$867 million, approximately A$1.239 billion, an internal rate of return of 31 per cent, an EBITDA Margin of 52 per cent, Capital payback of around two years after first production and life-of-project net Cash Flow of approximately US$2.9 billion.

These figures are study outputs rather than realised financial results and remain dependent on further technical work, funding and a final investment decision.

The project's commercial foundation includes the binding ten-year gas sales agreement with Alcoa executed in August 2026. The agreement covers 50 terajoules per day and provides for up to US$30 million of staged conditional funding through to final investment decision.

Company Overview

The Equus Gas Project is located in the North West Shelf gas fields offshore Western Australia. Equus Energy (ASX:EQU) holds an independently certified 2C contingent resource of 1.7 trillion cubic feet of gas plus 38 million barrels of condensate on a 100 per cent basis, which the company equates to 316 million barrels of oil equivalent net.

The proposed development concept involves five production wells feeding a leased floating production vessel, supported by a pipeline tie-back to existing infrastructure at either Pluto or Varanus Island.

Target first gas is 2033 over an anticipated 15-year project life. Forecast production includes approximately 2 million tonnes per annum of LNG, 50 terajoules per day of domestic gas and peak condensate production of roughly 12,000 barrels per day.

Financial and Operational Position

For the year ended 30 June 2026, Equus Energy (ASX:EQU) reported other income of A$2,588,498 and a net loss after tax of A$25,046,893. The result included A$7.6 million of listing costs and a A$12 million rehabilitation provision relating to the Glenloth-1 well.

Net cash used in Operating Activities was A$3,506,268.

Cash and cash equivalents stood at A$13,434,171 at 30 June 2026, while total Assets were A$13,837,545 and net assets were A$293,940, compared with net liabilities of A$4,996,376 a year earlier.

The company completed a reverse Acquisition of Western Gas Corporation and raised A$15 million before costs through a public offer before re-listing on 18 December 2025. No Dividend was paid for FY26.

What Investors May Watch Next

Entry into front-end engineering and design, or FEED, is an important milestone because it would trigger US$25 million of the conditional Alcoa funding. The company has indicated that this stage is targeted for 2027.

Equus Energy (ASX:EQU) is also seeking an operating partner through a farm-in process over the same period.

Beyond those steps, the final investment decision will be the defining milestone in determining whether the project proceeds toward construction and eventual production.

Risks

Equus remains a pre-final-investment-decision development project, with first gas targeted for 2033. This creates a long development timeline, while the capital requirements associated with bringing the project into production are substantial relative to the company's existing cash resources.

The gas resource is classified as contingent rather than as a booked reserve. Alcoa's funding is also staged and conditional, while an operating partner has yet to be secured.

Net assets stood at less than A$300,000 at 30 June 2026, highlighting the importance of future funding arrangements. Equus Energy (ASX:EQU) also remains exposed to development execution, Commodity prices, regulatory approvals, project financing and infrastructure-access risks.

Conclusion

Equus Energy (ASX:EQU) combines a sizeable certified contingent gas resource with a defined tie-back development concept and a binding long-term gas sales agreement with a major industrial customer.

The next stage of the investment story will revolve around entry into FEED, securing an operating partner and establishing the funding framework required to reach a final investment decision.

While the Alcoa agreement and existing resource base provide important foundations, the project remains several years from its targeted first gas in 2033, making execution, financing and development progress central to its longer-term outlook.