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- FID to proceed with ECSP development phase
- Efficient tie-in of discovered Otway Basin resources into existing infrastructure
- Targeting gross production of up to 90 TJ/d from 2028
- ECSP represents additional, affordable, capital-efficient, domestic gas supply
Amplitude Energy (ASX: AEL) has taken a positive final investment decision (FID) to proceed with the East Coast Supply Project (ECSP) development phase – providing a major boost to Australia’s energy network.
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The go-ahead of the development phase of the ECSP follows the drilling phase currently underway and includes activities such as subsea installations and modifications to the Athena Gas Plant (AGP) during FY28. FID marks the commencement of formal project execution for the ECSP development phase and authorises the award of key contracts.
The ECSP represents Amplitude Energy’s strategy to maximise utilisation of existing Otway Basin infrastructure, increase East Coast gas supply and generate long-term shareholder value.
Subject to completion of Amplitude Energy’s acquisition of Artisan, the ECSP development scope will comprise the discovered Annie, Juliet and Artisan (AJA) fields, and Nestor upon exploration success.
ECSP first gas remains targeted for CY2028. Based on the Company’s current ECSP development case, the AJA fields are designed to deliver gross production of up to approximately 90 TJ/day through the AGP for at least four years from first gas.
Returns from the ECSP based on AJA are expected to exceed Amplitude Energy’s investment hurdle rates, based on 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 over 120 PJ of gross 2C Contingent Resources, with FID representing a key milestone in the company’s assessment of whether the Annie and Artisan Contingent Resources satisfy the criteria for classification as Reserves.
Point forward costs for the ECSP development phase are expected to be $190m to $210 million for Amplitude Energy’s net 50% share over FY27 and FY28.
The company has already executed Gas Sales Agreements (GSAs) for ECSP gas supply with EnergyAustralia and AGL for a total of 35 PJ of Amplitude Energy’s share of ECSP production,” MD 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. AJA resources provide a very attractive base for the economics of the ECSP. Contracting outcomes and cost estimation work for FID provides greater visibility over expected development expenditure during FY27 and FY28.
“We are also excited to confirm the potential expansion of the ECSP via the Nestor well. 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.”
“Feedback from gas customers continues to suggest strong demand for more gas supply on the east coast at pricing levels attractive for Amplitude Energy.”
AEL was steady at 1.75% to $1.72. Mkt cap $514.2M.
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