Equus receives positive pre-FEED results to support new offshore WA gas project

• Pre-FEED confirms Equus as technically feasible and commercially robust development
• Development pathways to commercialise Equus validated
• Field contains large independently certified contingent resource of liquids-rich gas
• Two tie-back development pathways validated via existing infrastructure on the North West Shelf

Equus Energy (ASX: EQU) has confirmed the development potential of its large, liquids-rich Equus gas project off the WA coast.

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MD, Will Barker, said the receipt of positive results from a pre-front end engineering and design (Pre-FEED) study for Equus is a major development milestone for the project.

Pre-FEED has validated development pathways to commercialise Equus’ large independently certified contingent resource of 1.7 trillion cubic feet (Tcf) of gas and 38 million barrels (MMbbl) of condensate.

“The results of pre-FEED are an important milestone for Equus and provide a strong foundation as we progress discussions with upstream partners, infrastructure providers, LNG customers and financing groups,” Mr Barker said.

“What continues to stand out about Equus is the ability to leverage existing North West Shelf infrastructure and spare gas processing capacity to access both LNG export markets and the Western Australian domestic gas market, providing development flexibility and capital efficiency.

“At a time when WA is facing tightening domestic gas supply and Asian buyers continue to focus on long-term energy security, Equus is positioned as a new source of reliable Australian gas supply for the region.”

Mr Barker told shareholders that with the technical work now advanced, the company’s focus is shifting toward commercialisation, partnering and positioning the project for FEED and future development.

He told shareholders the study has also validated tie-back development pathways via existing Pluto and Varanus Island infrastructure on the North West Shelf.

Recent analysis from Rystad Energy has highlighted that Asian LNG demand is expected to increase materially as economies accelerate the transition away from coal and that supply shortfalls and delays in new LNG developments have increased reliance on existing, low-risk supply sources.

Mr Barker said that based on the results of pre-FEED, Equus is progressing into the next phase of partnering and commercialisation to advance the project toward FEED and a final investment decision (FID).

EQU is down 1.19% to 41.5¢. Mkt cap $85.95M.

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