Eastern Gas Corporation (ASX:EGA) Shares Slide Sharply: What’s Spooking Investors?

Sonal Goyal

27 October 2026 04:27 PM AEDT

Eastern Gas Corporation (ASX:EGA) Shares Slide Sharply: What’s Spooking Investors?

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Key Highlights

Eastern Gas Corporation shares traded at $0.13, down 13.33%, during the 27 October 2026 trading session.
Eastern Gas signed an indicative term sheet for an R&D Loan Facility of up to A$10 million.
The term sheet is non-binding, with an initial drawdown of up to A$1.5 million.

Shares in Eastern Gas Corporation Ltd (ASX:EGA) were trading at $0.13, down 13.33%, during the 27 October 2026 trading session, while the S&P/ASX 200 index was at 8,852.80, up 0.49% (42.90 points), at 3:40 pm GMT+11. Eastern Gas Corporation is a Sydney-based Australian gas developer and explorer. The company’s most recent update, dated 25 September 2026, covered an indicative term sheet with RiverFort Global Capital.

Indicative Term Sheet (25 September 2026)

In its announcement dated 25 September 2026, Eastern Gas said it signed an indicative term sheet with RiverFort Global Capital Ltd, which manages the proposed investor, for an R&D loan facility of up to A$10 million. The facility would give access to funding ahead of R&D tax incentive refunds, with a three-year availability period and an initial drawdown of up to A$1.5 million, subject to a review of the company’s R&D tax incentive position.

Each drawdown would have a 12-month term and be repaid within five working days of receipt of the relevant refund, and no later than 12 months from drawdown.

Pricing, Security and Status

The proposed terms include a fixed Interest Rate of 9% plus fees and unlisted options, and first-ranking security over R&D rebate receivables. The company said any refund entitlement depends on eligibility, registration of R&D activities and assessment by authorities, and that timing and amount are uncertain.

The term sheet is non-binding other than specified provisions, and the facility remains subject to definitive documentation and mutual agreement on drawdowns.

Sector Context

The broader market was higher during the session, with the S&P/ASX 200 index was at 8,852.80, up 0.49% (42.90 points), at 3:40 pm GMT+11. Gas developers and explorers report flow tests, appraisal work and funding arrangements, and results are measured against contingent resources before reserves are booked.

Eastern Gas Corporation shares were trading at $0.13, down 13.33%, against a benchmark gain of 0.49%, a gap of 13.82 percentage points. The figures are session data recorded while the market was open and can change before the market finishes trading.

Risks

The facility is not yet binding, and the R&D tax incentive entitlement is subject to eligibility and assessment. The loan carries a 9% interest rate plus fees and options.

What Lies Ahead

The announcement points to definitive documentation, review of the R&D tax incentive position and any initial drawdown.

Final Takeaway

Eastern Gas shares fell during the session. The latest update describes a financing proposal that remains subject to documentation and approvals.

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