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Pure Hydrogen (ASX:PH2) is taking its natural gas assets and spinning them out under the name Eastern Gas Ltd – to be listed on the ASX in a $10 million IPO.
That mightn’t be another Chemist Warehouse or a Digico, but at least it’s something.
It’s also an indication of Pure’s plans to strategise what is a palpable slowdown in hydrogen momentum, perhaps crowned last year when Twiggy’s Fortescue Metals Group rolled FFI back into its original structure.
An in-specie distribution will award existing shareholders with free shares in Eastern Gas.
Those shares will be in a QLD-based gas explorer with two main permits for exploration assets Windorah and Venus. The company’s presentation mentioned ongoing hydrogen production on a slide outlining its value proposition.
Funds raised at launch will be used to proceed to flow testing.
Pure Hydrogen (to become Eastern Gas) pointed to high East Coast gas prices starting at $10/GJ and also outlined the Federal government’s commitment to using natural gas, even in green energy scenarios.
On this front, both the LNP and ALP harmonise though the latter’s desire for environmental regulatory enhancement has caused concern in some quarters. Helping matters in this regard is the fact the company has gas estimates (on lower confidence ratings) in the billions of cubic feet.
Proximity to existing infrastructure was the other large selling point of Pure’s presentation on Wednesday: Windorah is in the Cooper Basin; Venus is in the Surat.
Notably – Eastern Gas intends to re-initiate now fairly historical discussions with Santos (2019) regarding the usage of pipelines near Windorah which could see gas ported and processed at Moomba.
PH2 last traded at 10cps through Wednesday morning.
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