- 01FID approves ECSP dev; subsea, Athena upgrades underway.
- 02Artisan gas field acquisition close; project scope AJA.
- 03Juliet-1 confirms HC; Nestor tie-in eyed.
Amplitude Energy (ASX: AEL) has made a final investment decision to proceed with the development phase of the East Coast Supply project (ECSP) in Victoria’s offshore Otway Basin.
The decision marks the commencement of formal project execution, and authorises the award of key contracts for subsea installations and modifications to the Athena gas plant to enable efficient tie-in of discovered Otway Basin resources into existing infrastructure.
Subject to closure of the $58.3 million Artisan gas field acquisition from Beach Energy (ASX: BPT), the development scope will comprise the Annie, Juliet, and Artisan (AJA) fields and the Nestor discovery, which Amplitude and its ECSP joint venture partner OG Energy will drill using the Transocean Equinox rig after completion of the Annie exploration well.
Drilling at Juliet-1 recently penetrated the primary Waarre C reservoir target and identified the presence of hydrocarbons, with preliminary data implying excellent reservoir quality with high deliverability and low carbon dioxide levels.
Adding Nestor to the drilling schedule could create an opportunity to maximise production during periods of high demand and pricing, such as when gas powered electricity generation is called upon.
AJA Field Production
Based on Amplitude’s current ECSP development case, the AJA fields are designed to deliver gross production of up to approximately 90 terajoules per day (100% gross) through the Athena gas plant for at least four years from first gas.
Annie and Artisan have been assessed to contain over 120 petajoules of gross 2C contingent resources, with FID representing a key milestone in the company’s assessment of whether these resources satisfy the criteria for classification as reserves.
Amplitude confirmed it would provide an updated reserves and resources statement once the assessment is complete and will commence work on a Juliet reserves estimate over the coming months.
ECSP point forward costs for the development phase are expected to be up to $210 million for Amplitude’s net 50% share over the 2027 and 2028 financial years, related to subsea infrastructure installation, Athena modifications and control system upgrades, pipeline re-lifing, approvals, and project management activities.
Costs associated with a potential Nestor subsea tie-in, contingent on exploration success at the Nestor well, form part of this estimate.
Gas Sales Agreements
The ECSP is Amplitude’s largest organic growth project and a cornerstone of the company’s strategy to increase east coast gas supply and materially improve its earnings, margins, and operating cash flow through production growth and improved utilisation of existing facilities.
Amplitude has previously executed gas sales agreements with EnergyAustralia and AGL Energy (ASX: AGL) for a total 35PJ of its share of production from the ECSP over a four-year term.
The ECSP final investment decision satisfies a key condition of these agreements, which provide diversified pricing exposure and validate customer demand in Australia’s southern markets.
Declining legacy supply in this region has increased dependence on gas diverted from Queensland and southern storage during high-demand periods.
Amplitude said its contracted position provides a strong foundation for project revenues while maintaining exposure to future market opportunities and further contracting would be progressed on completion of ECSP drilling.
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