Amplitude Energy’s Annie-2 development well has confirmed a high-quality gas reservoir, with an average stabilised flow rate of 57.2 MMscf a day and no formation water recovered. The well was completed ahead of schedule and budget, strengthening the technical case for the East Coast Supply Project while leaving resource estimates subject to further evaluation.
- 57.2 MMscf/day average stabilised gas rate
- 58.8 MMscf/day peak rate constrained by surface equipment
- 43.6 metres of net gas pay in Waarre C sands
- No formation water recovered during testing
- Well completed ahead of schedule and budget
Annie-2 records strong gas flow from high-quality reservoir
Amplitude Energy Limited (ASX:AEL) has completed its Annie-2 development well in the offshore Otway Basin after a clean-up test produced an average stabilised gas rate of 57.2 MMscf a day. The well reached a surface-constrained peak of 58.8 MMscf a day through a 60/64-inch choke, with the equipment limiting the test rate rather than the well’s measured deliverability.
The result came from a main flow period of eight hours and 20 minutes within roughly 18 hours of total flowing time. Annie-2 produced 35.9 MMscf of gas and 37.1 barrels of condensate, with no formation water recovered or interpreted. Downhole flowing pressure averaged about 3,200 psi during the main flow period, with no pressure depletion observed.
Development well adds support to ECSP supply plans
Annie-2 encountered 50 metres of gross pay and 43.6 metres of net pay in Waarre C formation sands, at depths between 2,197 and 2,253 metres measured depth. Amplitude said the data indicates materially improved permeability, porosity and deliverability compared with the original Annie discovery, while gas composition was consistent with Annie-1, including carbon dioxide of about 7 mol%.
The well is now being suspended for future development as part of the East Coast Supply Project, which Amplitude has already approved with first gas targeted for 2028. The result gives the project another positive technical data point after the company’s ECSP development approval set a target of up to 90 terajoules a day of gross production.
Nestor is next test for the drilling campaign
Execution has been favourable as well as geological. Amplitude said Annie-2 is well ahead of schedule and budget, with none of the general contingency allocated to the ECSP drilling programme used to date. That follows the company’s earlier Juliet reservoir results, which also pointed to strong reservoir quality and progress towards development.
Interpretation of Annie-2 remains preliminary. Amplitude has not reported a new reserves or contingent resource estimate, and its statement that Annie and Juliet reserve work will continue over coming weeks is not a replacement for those formal estimates. The Transocean Equinox rig is expected to move to the Nestor exploration prospect after Annie-2 operations finish this week, making that well the next material test of the resource base underpinning ECSP.
Bottom Line?
Annie-2 has improved the technical picture for ECSP, but the next valuation-relevant steps are formal reserve work, development execution and the Nestor exploration result.
Questions in the middle?
- How much will the Annie-2 and Juliet data change formal reserve estimates?
- Can Nestor add further supply beyond the current ECSP resource base?
- Will the project preserve its early cost and schedule advantage through development and first gas?