Eastern Gas set to debut as Pure Hydrogen spins off Australian gas assets

Pure Hydrogen Corporation Limited, a company focusing on clean energy solutions, has revealed plans to spin out its Australian natural gas assets into a separate publicly traded entity, Eastern Gas Limited. The proposed spinout aims to enhance shareholder value and expedite the development of key gas projects. Eastern Gas is expected to debut on the Australian Securities Exchange (ASX) through an Initial Public Offering (IPO), targeting a capital raise of $8 million to $10 million.

The assets included in the transaction encompass two significant projects in Queensland: the Windorah Gas Project in the Cooper Basin, estimated at 330 billion cubic feet (BCF) in 2C resources, and Project Venus, a coal seam gas (CSG) initiative in the Walloon CSG fairway with 123 BCF in 2C resources. Eastern Gas plans to use the IPO funds to finance near-term development, including fracture stimulation, drilling, and flow testing.

This move aligns with Pure Hydrogen’s strategic vision to focus on hydrogen technology and zero-emission vehicles while providing natural gas as a transitional energy source. Scott Brown, Managing Director of Pure Hydrogen, highlighted that the spinout allows both entities to sharpen their operational focus and capitalize on distinct market opportunities. Brown added that Eastern Gas’s experienced leadership team would accelerate exploration efforts to address Australia’s energy demands amid the global clean energy transition.

Eastern Gas’s prospects are supported by its prime location near existing gas operators and infrastructure, enhancing its potential to achieve commercial success. The Windorah Gas Project, for example, boasts independently certified resources and aims to improve production metrics through advanced techniques. Similarly, Project Venus seeks to convert its contingent resources into proven reserves by de-watering and flow-testing horizontal wells.

Eligible shareholders of Pure Hydrogen will receive in-specie distributions, offering one share in Eastern Gas for every five shares held. They will also have the option to purchase additional shares during the IPO. The transaction, subject to ASX and board approvals, is anticipated to unlock value for shareholders while providing investors with exposure to a pure-play gas exploration company.

The spinout comes at a time when natural gas is gaining recognition as a critical bridge fuel, complementing renewable energy investments. Eastern Gas’s debut is expected to provide a fresh opportunity for investors to tap into Australia’s burgeoning gas exploration sector.