Amplitude Energy Ltd. has agreed to acquire a 50 per cent stake in the offshore Artisan gas field from Beach Energy for AU$58.3 million in upfront cash.
The deal, struck alongside joint venture partner O.G. Energy, aims to fast-track production from the Otway Basin resource by 2028.
As part of the agreement, O.G. Energy has agreed to purchase an additional 10 per cent stake in Artisan to align both companies’ interests at 50 per cent each.
Situated roughly 17 kilometres south-east of Amplitude’s existing pipeline infrastructure, the Artisan field was discovered in 2021. Under the new arrangement, Amplitude will assume operatorship of the VIC/L35 licence area upon completion.
The transaction is heavily integrated with Amplitude’s East Coast Supply Project (ECSP).
By tying Artisan into existing infrastructure, including the Casino-Henry-Netherby pipeline and the Athena gas plant, Amplitude expects to significantly reduce development costs and accelerate delivery to southern domestic markets.
Amplitude CEO Jane Norman described the transaction as a win-win for all parties involved, noting that combining Artisan with the existing Annie field bolsters the base resource for the ECSP.
“Producing Artisan through Amplitude Energy’s existing infrastructure allows faster and lower-cost development of this gas for the east coast domestic market,” Norman said.
She added that the company expects to move rapidly toward a final investment decision (FID) on the ECSP development phase within the next few months.
“We expect to rapidly move to FID on the development phase of the ECSP over the next few months while the drilling of the Juliet and Annie wells is conducted, with Juliet now brought forward and drilling expected to commence by late July or early August.”
The deal’s structure includes the AU$58.3 million cash payment, funded through existing sources, alongside a future production royalty of A$3.75 per gigajoule, capped at 31 petajoules net to Amplitude.
Completion of the deal hinges on regulatory approvals and the successful finalisation of the Artisan development well, which is currently being drilled by the Transocean Equinox rig.
Under an amended schedule, drilling on Amplitude’s nearby Juliet-1 exploration well is now slated to commence ahead of schedule in late July or early August.
