Amplitude Energy has taken a final investment decision to proceed with the development phase of its East Coast Supply Project (ECSP). It has also approved drilling of the Nestor exploration well and confirmed that the Juliet-1 well has been completed.
The ASX-listed company said the project will tie Otway Basin resources into existing infrastructure, targeting gross production of up to 90 terajoules a day from 2028.
The decision marks the start of formal project execution and authorises the award of key contracts.
Development work includes subsea installations and modifications to the Athena Gas Plant during FY28.
Managing Director and CEO Jane Norman said: “Following the successful Juliet exploration result, we are pleased to have taken FID on the ECSP development phase, underpinned by Annie, Juliet and Artisan.”
The company described the ECSP as its largest organic growth project and a cornerstone of its strategy to maximise use of existing Otway Basin infrastructure.
Subject to completion of its acquisition of Artisan 1, the development scope covers the discovered Annie, Juliet and Artisan fields, with Nestor to be added if exploration succeeds.
Those fields are designed to deliver the gross production rate through the Athena Gas Plant for at least four years from first gas.
Returns are expected to exceed the company’s investment hurdle rates under internal mid-case assumptions and have been tested across a range of commodity price, execution and production scenarios.
Annie and Artisan together are assessed to contain more than 120 petajoules of gross 2C Contingent Resources, while work on Juliet reserve estimates will take place over the coming months.
Amplitude has already signed gas sales agreements with EnergyAustralia and AGL for a combined 35 petajoules of its share of ECSP production.
Norman said the planned approach for Nestor would help control costs.
“The planned ‘one-touch’ drilling and completion approach maximises capital efficiency by allowing the well to be completed during the current campaign if a discovery is made,” said Norman.
Nestor will be drilled after the Annie development well using the Transocean Equinox rig. Engineering and design work is complete and regulatory approvals are in place, and if successful, Nestor could be commercialised as early as 2028, subject to approvals and licences.
On the drilling campaign, Juliet-1 was cleaned up over 27 and 28 September and is being suspended, ready for development.
Gas samples showed about 1 per cent carbon dioxide and about 2 per cent nitrogen, making the gas suitable for blending with other ECSP fields.
The rig will move to the Annie discovery this week to begin work on the Annie-2 development well.
Norman said market conditions favoured new supply.
“Feedback from gas customers continues to suggest strong demand for more gas supply on the east coast at pricing levels attractive for Amplitude Energy,” said Norman.
She added: “With the federal and Victorian governments seeking solutions to east coast gas market tightness from 2028 onwards, there is support from both governments and customers to develop new domestic gas supply, reflecting a growing understanding of the importance of reliable, affordable and lower-emissions domestic gas.”