Highlights

  • Annie-2 development well completed and suspended, ready for future production as part of the East Coast Supply Project.
  • Peak surface-constrained flow rate of 58.8 MMscf/day achieved through a 60/64-inch choke during clean-up flow testing.
  • Data confirms excellent reservoir quality with 50 metres gross pay, 43.6 metres net pay, and no formation water recovery.
  • Gas composition consistent with the original Annie discovery; CO2 content approximately 7 mol%.
  • Annie-2 well programme is ahead of schedule and budget; the Transocean Equinox rig is now mobilising to the Nestor exploration well.

Amplitude Energy Limited (ASX:AEL) has announced the successful completion of the Annie-2 development well in Permit VIC/L37 within the Otway Basin, offshore Victoria. The well, which forms part of the Company's East Coast Supply Project (ECSP), was cased, completed with a sub-sea tree, and flow-tested during November 2026. Data collected from Annie-2 confirms an improvement in permeability, porosity, and deliverability compared to the original Annie-1 discovery well completed in 2019, and the well is now suspended and ready for future production tie-in.

Latest Development

During the clean-up flow test of Annie-2, a peak surface-constrained flow rate of 58.8 million standard cubic feet per day (MMscf/day) was achieved through a 60/64-inch choke. The main flow period of approximately 8 hours and 20 minutes recorded an average stabilised rate of 57.2 MMscf/day, with average bottom-hole flowing pressure of approximately 3,200 psi and no observed pressure depletion. No formation water was recovered during the test period. The well intersected 50 metres of gross pay and 43.6 metres of net pay in the Waarre C formation sands between 2,197 and 2,253 metres measured depth. Gas composition samples are consistent with the original Annie discovery, with CO2 content of approximately 7 mol%. The Annie-2 well programme is described as well ahead of schedule and budget, with none of the general contingency budgeted for the ECSP drilling programme consumed to date.

Company Background

Amplitude Energy is an Australian gas production company supplying the southeast domestic gas market, with offshore gas fields in Commonwealth waters and onshore processing plants in the Otway and Gippsland Basins. The Company has existing long-term customer gas supply contracts and is developing the ECSP in the Otway Basin, described as one of the largest new gas supply sources for the southeast domestic market. The Annie-2 well is the second of three wells in the ECSP drilling campaign; the Juliet development well was completed earlier and the Transocean Equinox rig will now move to drill the Nestor exploration prospect as the final well in the campaign. Amplitude Energy holds a 50% interest in VIC/L37, with the remaining 50% held by joint venture partner O.G. Energy.

Sector Context

Australia's east coast gas market is characterised by a tension between domestic Demand security and LNG export commitments. The southeast gas market, which includes Victoria, New South Wales, and South Australia, has experienced tightening supply conditions as production from existing Otway and Gippsland Basin fields has declined. New domestic supply projects like the ECSP are strategically important for maintaining affordable energy for industrial, commercial, and residential customers. The Otway Basin's Waarre C formation is an established, well-characterised reservoir with a track record of commercial production, reducing geological uncertainty for development-stage wells.

Market Perception

The Annie-2 test results — particularly the peak flow rate of 58.8 MMscf/day and the confirmation of no formation water — are commercially encouraging. For a gas development well where deliverability and reservoir quality are key inputs to the economic model, the preliminary indications of improved permeability over Annie-1 are noteworthy. The absence of pressure depletion during the flow period suggests excellent reservoir connectivity. The Company has indicated that work on both Annie and Juliet Contingent Resource estimates will continue in coming weeks, with results to date described as consistent with or above pre-drill Volume expectations.

Growth Drivers

The ECSP's value proposition is underpinned by the combination of proven reservoir quality at Annie and Juliet, Amplitude Energy's existing customer relationships and long-term gas supply contracts, and the southeast domestic market's structural need for new supply. The Nestor exploration well, the final well in the ECSP campaign, offers additional resource upside beyond the Annie and Juliet development wells. The Company also holds an extensive portfolio of exploration and development prospects in the Gippsland Basin and Queensland's Taroom Trough, providing longer-term growth options.

Risks and Challenges

The Annie-2 well results reported are from a clean-up flow test, and further evaluation including logging, testing, and resource assessment work is ongoing. The Annie Contingent Resource remains at a 2C basis and has not yet been converted to a Reserves estimate. The pace of development to first production is subject to regulatory approvals, infrastructure contracting, and financing arrangements. Gas composition, particularly the approximately 7 mol% CO2 content, must be managed in the production and processing pathway. As an offshore gas development in Commonwealth waters, environmental approvals and community stakeholder considerations are relevant to the project timeline.

Recent Announcements

The Company has previously reported that the Juliet development well results were also consistent with or above pre-drill expectations. Reserve and Contingent Resource assessments for both Annie and Juliet are ongoing, with updated estimates expected in coming weeks. The ECSP has been characterised as the largest new source of supply for the southeast domestic gas market.

Key Insights

Amplitude Energy has completed the Annie-2 well in a manner that validates the reservoir quality and deliverability potential of this Otway Basin gas asset. The well's performance — including a peak rate of 58.8 mmscf/day, notable reservoir connectivity, and no water production — provides a solid technical foundation for the resource assessment and development planning phase of the ECSP. With the ECSP drilling campaign now moving to its final Nestor exploration well, the Company is building toward updated resource estimates and a clearer development timeline for what is designed to be a meaningful new source of domestic gas supply.