Amplitude Energy has approved development of its East Coast Supply Project, targeting first gas in 2028 and gross production of up to 90 TJ a day. The decision also adds an exploration well to the campaign, lifting FY27 capital expenditure guidance by up to $80 million.
- ECSP development FID targeting first gas in 2028
- $190m-$210m net development cost over FY27 and FY28
- Gross production target of up to 90 TJ a day
- Nestor exploration well sanctioned at $70m-$80m net cost
- FY27 capital expenditure guidance lifted to $320m-$390m
ECSP Moves from Planning to Execution
Amplitude Energy Limited (ASX:AEL) has crossed the most consequential threshold yet for its East Coast Supply Project, taking Final Investment Decision on the development phase and authorising formal project execution. The Otway Basin project is targeting first gas in calendar 2028, with the Annie, Juliet and Artisan fields designed to deliver up to approximately 90 TJ a day of gross production through the Athena Gas Plant for at least four years.
The commitment covers the brownfield work needed to connect discovered resources to existing infrastructure, including subsea installations, pipeline re-lifing, control-system upgrades and modifications to the Athena plant. Amplitude expects its 50% share of point-forward development costs to total $190 million to $210 million across FY27 and FY28, with most of the expenditure tied to fixed-cost items or fixed-rate contracts.
Nestor Adds Upside and Raises Capital Spending
The company has also sanctioned the Nestor exploration well, which will follow the Annie-2 development well in the current Transocean Equinox campaign. Nestor is a drill-ready prospect near existing infrastructure; a commercial discovery could be brought into the ECSP as early as 2028, subject to approvals and licences.
That option is not free. Amplitude expects to spend $70 million to $80 million on its 50% share of Nestor drilling and completion, prompting an increase in FY27 capital expenditure guidance to $320 million-$390 million from $250 million-$310 million. The company says the cost is reduced by using the rig already active in the Otway campaign and by retaining the option to complete a successful well through the same “one-touch” approach as the broader project.
Juliet Test Supports Development Case
Juliet-1 has now been completed, cleaned up and suspended for future development. The well produced a peak, surface-constrained flow rate of 56.7 MMscf a day, while a main flow period recorded an average stabilised rate of 54.5 MMscf a day. The test produced 27.1 MMscf of gas and 14.8 barrels of condensate, with no formation water recovered or interpreted.
Laboratory analysis found approximately 1 mol% carbon dioxide and 2 mol% nitrogen, which Amplitude said was favourable for blending with gas from other ECSP fields. The data remains subject to further evaluation, however, and the announcement does not report a reserves or contingent-resource estimate for Juliet.
Contracts Provide an Initial Revenue Base
Amplitude has gas sales agreements with EnergyAustralia and AGL covering 35 PJ of its share of ECSP production. The FID satisfies a key condition in those agreements, giving the project an initial contracted demand base while leaving further contracting to be pursued after the drilling phase concludes.
The economics still depend on several moving parts. The Artisan acquisition remains conditional on regulatory approvals and licence transfers, while the company’s production target and returns rely on resource estimates, field pressures, gas composition, commodity prices and execution. Annie and Artisan are assessed to contain more than 120 PJ of gross 2C Contingent Resources, but Amplitude will only provide an updated reserves and resources statement after its ongoing assessment is complete.
Bottom Line?
FID removes a major approval hurdle, but the investment case now turns on execution, Artisan completion, Nestor success and the conversion of resources into reserves before first gas in 2028.
Questions in the middle?
- Will the Annie, Juliet and Artisan resource base convert into reserves on the timetable implied by the development plan?
- Can Nestor deliver commercial volumes without stretching the revised FY27 capital envelope?
- How much additional ECSP production will be contracted before the drilling campaign ends?