Key Highlights

  • Eastern Gas Corporation Limited (ASX:EGA) shares traded at $0.165 on 21 October 2026, down 8.33%.
  • Eastern Gas’ latest announcement, dated 25 September 2026, covers a non-binding term sheet for a proposed R&D loan facility of up to A$10 million.
  • The proposed facility carries fixed interest of 9% plus fees and unlisted options, secured over R&D rebate receivables.

Eastern Gas Corporation Limited (ASX:EGA) shares fell 8.33% to trade at $0.165 during the trading session on 21 October 2026, while the S&P/ASX 200 (XJO) stood at 8,809.20, down 7.70 points or 0.087%. Eastern Gas’ latest ASX announcement, dated 25 September 2026, covers an indicative term sheet with RiverFort Global Capital Ltd for a proposed R&D loan facility of up to A$10 million.

About Eastern Gas

Eastern Gas Corporation Limited is an Australian natural gas exploration and development company focused on supplying east coast domestic markets. Its portfolio features two tenements in Queensland, in the Surat Basin (Walloon CSG fairway) and the Cooper Basin.

Proposed facility terms

The term sheet with RiverFort, which manages the investor providing the funding, contemplates a three-year availability period, with an initial drawdown of up to A$1.5 million subject to a review of the company’s R&D tax incentive position. Further drawdowns would be subject to mutual agreement up to A$10 million. Each drawdown would have a 12-month term and be repaid within five working days of receiving the relevant R&D tax incentive refund, and in any event by maturity.

The facility would carry fixed interest of 9%, a 5% implementation fee deducted from each drawdown, due diligence and legal fees of A$10,000 and A$12,500, a 2% introducer fee payable to Spark Plus, and first-ranking security over R&D rebate receivables.

Options and other terms

With each drawdown, Eastern Gas would issue unlisted options to the investor equal to 30% of the drawdown divided by a reference price, exercisable at a 40% premium to that price and expiring on 30 September 2029. The first tranche is targeted for issue around 15 December 2026 if the facility proceeds. Options would be issued within Listing Rule 7.1 capacity, or with shareholder approval if capacity is insufficient. The investor would also have a six-month right of first refusal on certain finance transactions.

Status

The term sheet is non-binding other than specified provisions on due diligence, law and jurisdiction, confidentiality, no shopping and legal status. Definitive documentation is required, and the company said it will make a further disclosure when it is entered into.

Sector context

Companies that expect R&D tax incentive refunds can use finance facilities to access funds ahead of receiving the refund. These arrangements generally involve interest, fees and security over the refund receivable.

Gas developers and explorers in Queensland’s Surat and Cooper basins typically fund appraisal work through equity, debt and incentives.

Risks and uncertainties

The term sheet is non-binding, so the facility may not proceed or may change. The R&D tax incentive refund depends on eligibility, registration and assessment, and its amount and timing are uncertain.

Each drawdown must be repaid by its maturity date regardless of when the refund is received. Interest, fees and options add cost and potential dilution, and the investor has security over the receivables.

What's next

The next steps are due diligence, negotiation and execution of definitive documentation. The company said it will make a further disclosure at that time, and the first options tranche is targeted for around 15 December 2026 if the facility proceeds.