Amplitude Energy Targets 2028 Gas Production with $150M Capital Raise

Expansion of East Coast Supply Project

Amplitude Energy Limited (ASX – AEL) has announced a significant expansion of its East Coast Supply Project (ECSP) in the Otway Basin, introducing a fourth well targeting the Nestor prospect. This expansion, dubbed ECSP+, aims to increase gas supply capacity to meet rising demand, particularly for gas-powered electricity generation and to support renewable energy firming. Subject to joint venture approvals and regulatory clearances, first production from the Nestor well could commence as early as 2028.

The ECSP+ leverages Amplitude Energy’s existing infrastructure at the Athena Gas Plant, enhancing capital efficiency by integrating the Nestor well into the current drilling campaign. This approach avoids the costs and delays of returning with a rig for a separate drilling phase, accelerating the timeline for additional gas supply to the market.

Potential Restart of Patricia Baleen Field

In addition to the ECSP expansion, Amplitude Energy is exploring the potential restart of the Patricia Baleen gas field in the Gippsland Basin. This initiative aims to further increase gas supply to the east coast domestic market before the decade’s end. Restarting Patricia Baleen would also extend the operational life of the Orbost Gas Processing Plant and unlock valuable gas storage capacity connected to Victoria’s gas infrastructure.

Amplitude Energy is currently conducting a SELECT phase study on Patricia Baleen, with plans to progress to front-end engineering and design (FEED) in 2026. Engineering tenders for plant and pipeline restart work are underway, reflecting the company’s commitment to advancing this opportunity alongside its joint venture partner SGH Energy.

Funding Growth Through Equity Raising

To finance these growth projects, Amplitude Energy is launching a fully underwritten $150 million equity raising. This comprises a 1-for-6.35 accelerated non-renounceable entitlement offer to raise $100 million and a placement to raise $50 million, both priced at $0.24 per share. The offer price represents a discount of approximately 9.2% to the theoretical ex-rights price and 11.1% to the last closing price, aiming to attract strong investor participation.

The equity raising will issue approximately 625.9 million new shares, representing about 24% dilution of the current share base. Proceeds will primarily support the ECSP+ development, the Patricia Baleen restart, and associated costs. Amplitude Energy’s directors intend to participate in the retail entitlement offer, signaling confidence in the company’s growth strategy.

Strategic and Market Context

Amplitude Energy’s Managing Director and CEO, Jane Norman, highlighted the strategic importance of these initiatives, noting strong joint venture support and clear market demand for increased gas supply on Australia’s east coast. With federal and Victorian governments seeking solutions to forecast gas supply shortfalls from 2028 onwards, these projects align with broader policy objectives to ensure reliable, affordable, and lower-emission domestic gas supply.

The company’s focus on leveraging existing infrastructure in the Otway and Gippsland Basins positions it well to respond to market needs efficiently. The planned use of the Transocean Equinox rig and subsea technology for the Nestor well reflects a capital-efficient approach to development.

Investors will be watching closely for the investment decision expected in the first quarter of 2026, which will determine the final commitment to drilling the Nestor well and advancing the ECSP+ program.