Key Highlights

• Amplitude Energy approved the Final Investment Decision for its East Coast Supply Project development phase, targeting gross production of up to 90 TJ/d from 2028.

• Point-forward development costs are estimated at $190–$210 million net to Amplitude Energy over FY27 and FY28.

• The Nestor exploration well was sanctioned as an optional addition to the current drilling campaign, with 50% net cost of $70–$80 million.

• FY27 Capital Expenditure guidance was increased to $320–$390 million from $250–$310 million to reflect Nestor drilling.

Amplitude Energy Limited (ASX:AEL), an Australian gas production company operating in the Otway and Gippsland Basins, announced on 30 September 2026 that it has taken the Final Investment Decision (FID) to proceed with the development phase of its East Coast Supply Project (ECSP). The development phase targets gross production of up to 90 terajoules per day (TJ/d) from the Annie, Juliet, and Artisan (AJA) fields, with first gas targeted for 2028. Simultaneously, the company sanctioned the drilling of the Nestor exploration prospect.

About Amplitude Energy

Amplitude Energy is an Australian gas producer focused on supplying the south-east domestic gas market. The company operates offshore gas fields in Commonwealth waters and onshore processing plants in the Otway and Gippsland Basins. It holds long-term gas supply agreements with EnergyAustralia and AGL for a combined 35 petajoules of its share of ECSP production, providing contracted Revenue underpinning the project economics. The ECSP represents the company's largest organic growth project.

ECSP Development Phase: Scope and Costs

The development phase of the ECSP encompasses subsea installations and modifications to the Athena Gas Plant during FY28. Point-forward development costs are estimated at $190–$210 million net to Amplitude Energy's 50% share, spanning FY27 and FY28. This range includes subsea infrastructure installation, Athena Gas Plant modifications, control system upgrades, pipeline re-lifing, approvals, and project management activities, along with appropriate contingencies. The majority of development costs relate to fixed-cost or fixed-rate contracts, which the company noted mitigates cost overrun risk.

The Annie and Artisan fields together are assessed to contain over 120 petajoules of gross 2C Contingent Resources. The company indicated FID triggers a reassessment of whether the Annie and Artisan Contingent Resources satisfy the criteria for reclassification as Reserves, with an updated statement to follow. Results from the Juliet-1 well, completed in late September 2026, have been broadly consistent with pre-drill expectations.

Nestor Sanction and FY27 Guidance Revision

In parallel with the ECSP FID, the ECSP Joint Venture — comprising Amplitude Energy and O.G. Energy — sanctioned the drilling of the Nestor exploration prospect. Nestor is a drill-ready exploration target close to existing Otway Basin infrastructure, preserved as an optional well in the current Transocean Equinox drilling campaign. The 50% net cost to Amplitude Energy for Nestor drilling and completion activities is expected to be $70–$80 million.

As a result of the Nestor sanction, FY27 capital expenditure guidance was revised upward to $320–$390 million, from the previous guidance of $250–$310 million. No change was made to FY27 gas production or operating cost guidance.

Market Context

Managing Director and CEO Jane Norman noted that east coast gas market tightness from 2028 onward has attracted support from both Federal and Victorian governments for new domestic gas supply projects. The company holds GSAs with EnergyAustralia and AGL for a total of 35 PJ of its ECSP production, with the FID satisfying a key condition to activate those agreements. The development is to be funded through existing cash reserves and operating cash flow.

Key Takeaways

Amplitude Energy's FID on the ECSP development phase commits the company to a capital program of $190–$210 million net over two financial years, targeting first gas from 2028 in a supply-constrained east coast market. The Nestor sanction adds exploration upside but also lifts FY27 capex guidance. The AJA fields carry contracted offtake with major Australian gas buyers, providing a revenue foundation for the development investment.