Amplitude Energy (ASX:AEL): Otway Gas Project Moves Into Development

Aditi Sarkar

12 November 2026 03:27 PM AEDT

Amplitude Energy (ASX:AEL): Otway Gas Project Moves Into Development

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Highlights

Amplitude Energy (ASX:AEL) traded at AUD 1.82 on 12 November, unchanged.
The East Coast Supply Project reached a development Investment decision in September.
The company targets gross gas production of up to 90 terajoules daily from 2028.
Expected FY27–FY28 development expenditure is AUD 190–210 million net to Amplitude.

Amplitude Energy Limited explores, develops and produces Natural Gas in Australia, with a focus on supplying the east coast market from offshore Victorian resources. On 12 November 2026, Amplitude Energy (ASX:AEL) shares were at AUD 1.82, unchanged for the trading session. In September, the company announced a final investment decision for the development phase of its East Coast Supply Project, together with decisions involving the Nestor prospect and Juliet and Annie wells. The developments involve future supply capacity and continued drilling rather than completed 2028 production.

Otway Basin Operations and Gas Markets

Amplitude's operating and development interests include offshore gas resources in Victoria's Otway Basin, with connections to established infrastructure. The commercial purpose of its development plans is to move discovered resources toward the Australian east coast gas market. Offshore gas development generally requires a combination of wells, subsea connections, processing arrangements and supply agreements. The company's project disclosures distinguish discoveries and development approvals from gas volumes that have already been produced and sold.

East Coast Supply Project Investment Decision

On 30 September 2026, Amplitude announced approval of the East Coast Supply Project development phase. The plan involves tying discovered offshore resources into existing infrastructure, with gross production targeted at up to 90 terajoules per day from 2028. The target is a project design and scheduling objective, not a current measured production rate. By prioritising connections to existing facilities, the project uses a brownfield development approach, although offshore installation and commissioning remain necessary before additional supply can start.

Development Expenditure and Contracts

Amplitude disclosed expected point-forward development expenditure of AUD 190 million to AUD 210 million net to the company across FY27 and FY28. It stated that the development programme had been contracted and that subsea contracting outcomes were consistent with internal expectations. These planned Capital costs should be distinguished from expenditure already recognised in historical financial statements. The final amount may depend on project delivery, equipment, services and programme timing. Commercial results will also depend on future gas volumes and sales terms.

Juliet and Annie Well Programmes

In early September 2026, Amplitude reported that its Juliet-1 exploration well encountered a gas-bearing Waarre C reservoir. Initial measurements indicated at least 60 metres of gross gas-bearing interval, including 49 metres of interpreted high-quality net pay. Those figures are geological measurements, not a proven daily production rate. The company subsequently said Juliet-1 had been completed and that the Annie development well would follow. Well-test results, completion work and connections will determine how these discoveries contribute to the broader development plan.

Nestor Exploration Decision

The September announcement also confirmed that the joint venture had sanctioned drilling of the Nestor exploration well. Nestor is intended to assess the possibility of additional resources and, if a commercial discovery occurs, potential future production contribution. An exploration sanction is not equivalent to a discovery, reserve booking or development approval. Amplitude Energy (ASX:AEL) may provide further information on drilling results, subsurface interpretation and development implications through subsequent releases.

Risks and Future Monitoring Points

Offshore development has schedule and cost exposure from drilling, subsea installation, weather, equipment reliability and regulatory requirements. Reservoir performance may differ from pre-drill interpretations. Domestic gas Demand and contract structures influence realised commercial outcomes, while the project must progress through commissioning before reaching its targeted supply window. Investors can monitor construction expenditure against the FY27–FY28 range, outcomes at Nestor, post-drilling information from Juliet and Annie, and future production guidance issued by the company.

Key Insights

Amplitude Energy (ASX:AEL) has progressed the East Coast Supply Project from planning into a sanctioned development phase. The September announcement establishes a gross production target of up to 90 terajoules daily from 2028 and a defined point-forward net capital range. Execution of the drilling, subsea and tie-in programme will determine when incremental gas can enter the east coast market. Until then, planned capacity should not be described as realised supply.

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