Amplitude Energy Targets 73 TJ/day Production Post $150m Capital Raise
Amplitude Energy Limited has announced a fully underwritten $150 million equity raising to fund the expansion of its East Coast Supply Project (ECSP+) and the potential restart of the Patricia Baleen gas field, aiming to boost gas supply in Australia’s constrained east coast market.
- Fully underwritten $150 million equity raising launched
- ECSP+ expansion includes addition of the Nestor well
- Potential restart of Patricia Baleen field to enhance Gippsland Basin supply
- Targeted first gas from ECSP+ in calendar year 2028
- Strong operational momentum with increased production and cost savings
Funding Growth Through Equity Raising
Amplitude Energy Limited has initiated a significant capital raise, comprising a $50 million placement and a $100 million accelerated non-renounceable entitlement offer. This $150 million equity raising is fully underwritten and designed to finance key growth projects, notably the expansion of the East Coast Supply Project (ECSP+) and the potential restart of the Patricia Baleen gas field.
Leveraging Existing Infrastructure for Expansion
The ECSP+ expansion centers on adding a fourth well targeting the Nestor prospect in the Otway Basin. Nestor is described as a high-quality, low-risk prospect that benefits from proximity to existing infrastructure, including the Athena Gas Plant (AGP). The project aims to increase gas supply capacity, particularly during periods of peak demand and elevated pricing, supporting gas-powered electricity generation and complementing renewable energy sources. The joint venture with O.G. Energy is aligned on the strategic importance of Nestor, with an investment decision targeted for the first quarter of 2026 and drilling planned for late 2026 or early 2027.
Patricia Baleen Restart, A Strategic Opportunity
In addition to ECSP+, Amplitude Energy is evaluating the restart of the Patricia Baleen field in the Gippsland Basin. This brownfield project leverages existing infrastructure to provide additional gas supply and storage potential, enhancing energy security and flexibility to meet seasonal demand. The restart is expected to deliver around 4.5 terajoules per day through the Orbost Gas Processing Plant (OGPP), with feasibility and engineering studies progressing through 2026.
Operational Momentum and Financial Position
Amplitude Energy reports strong operational performance, with group net production increasing to 73 terajoules per day post-ECSP+ targets and adjusted cash flow from operations doubling since FY22. The company maintains a solid financial position, with a cash balance of $71 million and net debt of $234 million as of September 2025. Cost savings exceeding $13 million annually have been realized through operational improvements, and the company is preparing for a proposed 1-for-11 share consolidation to be voted on at the upcoming AGM.
Navigating Risks and Market Dynamics
While the projects present promising growth opportunities, Amplitude Energy acknowledges a range of risks typical of the oil and gas sector. These include exploration and development uncertainties, operational challenges, market price volatility, regulatory changes, and environmental considerations. The company’s strategy includes rigorous risk management, joint venture alignment, and engagement with regulators and communities to mitigate these factors.
Bottom Line?
Amplitude Energy’s equity raise sets the stage for accelerated growth, but success hinges on exploration outcomes and market conditions.
Questions in the middle?
- Will the Nestor well meet its high probability of gas discovery and deliver on production targets?
- How will the Patricia Baleen restart impact Amplitude Energy’s long-term supply flexibility and storage capabilities?
- What market and regulatory developments could influence the timing and economics of ECSP+ and related projects?
