Amplitude Energy’s ECSP hits the skids after Isabella gas wildcat deemed non-commercial
Australian junior Amplitude Energy has delayed the final investment decision for its East Coast Supply Project (ECSP) in Australia after its latest gas exploration well failed to deliver as hoped.
The ECSP is earmarked to supply gas to the domestic east coast market via the onshore Athena Gas Plant in Victoria from 2028. Amplitude last November said its ECSP expansion would target more than 360 billion cubic feet of gross unrisked prospective resource on a best estimate basis.
The operator recently completed flow testing on a sidetrack (ST-1) of its Isabella gas discovery, located in permit VIC/L24 in the offshore Otway basin, which had intersected a gas-bearing reservoir in the primary Waarre C formation.
However, pressure depletion during the testing period did not support a commercial development of the Isabella field in the present location, the operator said.
The Isabella well flow test included a main flow period of eight hours with an average stabilised rate of 46.4 million cubic feet per day of gas with an average flowing bottom hole pressure of 2639 pounds per square inch absolute.
Amplitude chief executive Jane Norman said the result is “disappointing”, while noting that the geological data obtained would be useful for informing future exploration.
“The result at Isabella does not impact our view on the probability of success of other Otway Basin exploration prospects, which have simpler geology,” she said.
The ST-1 well will now be plugged and abandoned after which Amplitude will release the drilling rig Transocean Equinox to the next member of the offshore Otway Basin rig consortium.
In tandem, Amplitude is deferring FID for the development phase of the ECSP to follow drilling of subsequent wells, expected in the second half of this year.
As the project is well-advanced, there is no change to the ECSP drilling programme, project budget or target for first gas from the 2028 calendar year, added the operator.
This disappointment with the Isabella ST-1 follows negative results from Amplitude’s first wildcat on the acreage, Elanora-1, which was water-bearing with no elevated gas readings recorded.
Amplitude over the coming months will assess the drilling and flow test data from the Isabella and Elanora wells.
“Isabella was a large and prospective target for the ECSP; however its size also corresponded with reservoir complexity, meaning it will require time to interpret the drilling information received,” added Norman.
Amplitude recently executed a binding foundation gas sales agreement with EnergyAustralia for the supply of 30 petajoules (801 million cubic metres) of gas over an initial four-year term, with expected commencement in the second half of 2028, contingent on FID.
The ECSP is a 50:50 joint venture between Amplitude and Israeli energy player OG Energy.
Amplitude’s share price fell 38% on Wednesday on the back of its announced delay to the ECSP’s FID.
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