Western Australian gas developer Equus Energy is preparing to launch a formal search for major partners to develop its significant offshore gas fields by the middle of 2026. The company positions its project as a critical new supply source for the state's domestic and export markets, particularly as the giant North West Shelf venture begins to wind down.
IPO Success and Development Timeline
The company is set to join the Australian Securities Exchange on Thursday, following a highly successful $15 million initial public offering last month. The offer, priced at 20 cents per share, was more than two times oversubscribed, indicating strong investor appetite for new energy ventures in WA.
Equus co-founder and managing director Will Barker stated that listing was a key step to secure the capital required to advance the project. "The timing is right for us to push the project forward now," Mr Barker said.
The company plans to initiate a formal partner search in the June quarter of 2026. This will follow the completion of preliminary engineering and design studies funded by offtake partner Alcoa, which are expected to conclude in February.
A Strategic Asset in a Prime Location
Equus Energy holds a 100% interest in the undeveloped Equus gas fields, located approximately 200 kilometres off the coast of Onslow in Western Australia. The asset is strategically situated adjacent to Woodside Energy's massive $16 billion Scarborough gas development.
The development plan for Equus is designed to be cost-effective, focusing on utilising existing gas processing infrastructure in the region to minimise upfront construction costs. Woodside, which has previously considered the Equus gas to backfill its Karratha domestic gas and Pluto LNG plants, is viewed as a likely processing partner.
The project boasts a substantial contingent resource of 1.7 trillion standard cubic feet of gas. Mr Barker emphasised the scale of the find, stating, "Equus is a very material reserve."
Securing Demand and Addressing Market Needs
Equus has already secured a cornerstone customer in Alcoa. In a deal struck last September, the US-owned bauxite miner agreed to provide up to $US30 million (approximately $46 million AUD) to fund initial project engineering work. Upon successful development, Alcoa would gain exclusive rights to 50 terajoules of gas per day to power its operations in WA's South West.
Mr Barker highlighted the project's relevance to the local market, noting that while east coast gas shortages often dominate headlines, the WA market is substantial in its own right. "The WA market is a lot bigger market, both from an LNG point of view and the domestic market," he said, adding that "we haven’t had any big new projects for a number of years."
He positioned Equus as a future supplier capable of meeting both domestic demand and export LNG needs as the North West Shelf's production declines due to depleting reserves.
The successful IPO attracted several major Australian investment funds to Equus Energy's share register, including Regal Funds Management and SG Hiscock. "There’s not too many of us listed oil and gas companies these days, (but) people are looking for exposure to the energy sector, particularly the WA market," Mr Barker observed.
