Eastern Gas IPO: Pure One’s Spinoff Targets Cooper Basin and Surat Gas Assets

Eastern Gas has been listed on the ASX following an IPO raising approximately AUD 5.5 million, completing its spinoff from Pure One (ASX: PH2), formerly known as Pure Hydrogen.
The demerger creates two distinct investment opportunities: Pure One continues pursuing hydrogen infrastructure and zero-emission vehicles, while Eastern Gas focuses exclusively on developing natural gas resources in Queensland’s Cooper and Surat basins.

We believe the timing is strategically sound. Australia’s east coast faces a looming gas supply crunch, which gives junior explorers a clearer path to market than they might otherwise have. For Pure One shareholders, the spinoff gave them one Eastern Gas share for every five PH2 shares they owned, so they now have a stake in gas projects without having to spend extra money.

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Why Eastern Gas’s Queensland Assets Could Fill a Growing Supply Gap

Eastern Gas holds two assets that, in our view, offer genuine near-term development potential in basins with proven production history.

The main project is Windorah in the Cooper Basin, which has 330 billion cubic feet (Bcf) of gas resources. In June 2025, the Queensland Government backed the project by granting a 15‑year permit and approving the work plan. This shows regulators believe the project has commercial potential. Money raised from the IPO will be used to improve gas flow at the Queenscliff‑1 well.

The second project is Project Venus in the Surat Basin, which holds 123 Bcf of gas resources. It sits in the Walloon coal seam gas area, where more than 10,000 wells have already been drilled. The project is close to existing operators like Senex Energy and nearby infrastructure, which could lower costs if gas flows are proven.

Together, these two projects give Eastern Gas 453 Bcf of resources. This is a strong base for a small explorer, though the challenge remains of turning these resources into actual production.

Australia’s Gas Supply Crunch Creates a Strategic Window

The broader market conditions work in Eastern Gas’s favour, strengthening the investment case.
The Australian Energy Market Operator (AEMO) has warned of possible gas shortages on peak‑demand days starting in 2025 and seasonal gaps from 2026 as Bass Strait production falls faster than demand. The ACCC’s latest gas review supports this view—southern states will rely more on Queensland gas, with clear supply shortfalls expected from 2028 unless new projects begin.

For investors, this means steady demand and strong pricing. Gas prices are still higher than before 2022, at around AUD 13–14 per gigajoule. If Eastern Gas can show that its wells produce gas at commercial levels, it would be supplying a market that urgently needs it.

The Investor’s Takeaway for Eastern Gas

Eastern Gas enters the market as a speculative, pre-revenue explorer with near-term catalysts but meaningful execution risk. In our view, the risk-reward profile suits investors comfortable with exploration-stage opportunities.

The smaller-than-expected raise presents a challenge. The original IPO target was AUD 8–10 million, so the reduced capital limits planned activities. We believe investors should closely monitor Queenscliff-1 results; successful flow rates could attract further funding, while disappointing results may require dilutive capital raises.
On the positive side, Managing Director David Spring brings over 35 years of experience, including senior roles at Senex Energy and BHP. Experienced leadership matters significantly at this stage.

Right now, Eastern Gas gives investors exposure to Australia’s gas supply story. The market case is real, but this is still an early‑stage, high‑risk play where drilling success will decide the company’s value.