A deeply discounted, development-ready 1.7 Tcf WA gas option whose value hinges on securing a partner and infrastructure access before capital runs out.
Overview
Equus Energy (EQU.AX) re-listed on the ASX in Dec 2025 after acquiring Western Gas, repositioning the company as a focused developer of the Equus Gas Project on WA’s North West Shelf. The investment case is driven by monetization of a large, independently certified, appraised contingent resource (2C: 1,702 Bscf gas and 38 MMstb condensate) via a phased, modular development concept intended to leverage existing offshore/onshore infrastructure and reduce capex and schedule risk. Equus is pre-revenue, so valuation hinges on de-risking milestones (Pre-FEED → partnering → FEED/FID) rather than earnings. A pivotal validation is the binding Alcoa Funding and Gas Sales Agreement, providing up to US$30M for studies and a 10-year 50 TJ/d offtake commitment. Success depends on securing a strategic partner and a binding processing pathway into NWS LNG/gas infrastructure; failure leaves a potentially stranded but valuable resource.