Australis Oil & Gas' (ASX:ATS) deal with EQV group provides validation on the geological and commercial credentials of the Tuscaloosa Marine Shale (TMS) play, with the development partnering set to unlock the value of the large undeveloped TMS resource, according to a Thursday Euroz Hartleys note.
ATS has agreed to sell a 90% interest in its producing wells for $16.9 million to an affiliate of EQV Group, the research firm noted.
The deal allows the full amount of drawn debt to be repaid and provides a pro forma cash balance of $21 million as of January 2026.
Euroz Hartleys maintained its speculative buy rating on ATS with its price target of AU$0.08 under review.
The company's shares surged almost 54% in recent Thursday trade and earlier hit a 52-week high.