Amplitude Energy (ASX: AEL) Hits 58.8 Million Cubic Feet a Day at Annie-2 as Major Gas Growth Plans Gain Momentum

Amplitude Energy (ASX: AEL) has delivered an encouraging result from its Annie-2 development well, recording a peak gas flow of 58.8 million standard cubic feet per day in the offshore Otway Basin.

The result strengthens confidence in its East Coast Supply Project (ECSP), which targets first gas in 2028, and highlights the potential for Amplitude to expand domestic gas production using established infrastructure.

With record quarterly revenue, improving production and encouraging drilling performance, the company is building a stronger foundation for its next phase of growth.

Key Numbers

• 58.8 MMscf/day: Peak gas flow recorded at Annie-2 during testing on 9–10 November 2026.
• 57.2 MMscf/day: Average stabilised gas flow during the main testing period.
• 43.6 metres: Net gas pay intersected in the Waarre C reservoir.
• $83.3 million: September-quarter revenue, up 18% quarter-on-quarter.
• $144.2 million: Cash balance at 30 September 2026, with net debt of approximately $31 million.

Annie-2 Strengthens the Gas Development Outlook

The 11 November 2026 announcement confirmed that Annie-2 had been successfully drilled, cased and completed after reaching a measured depth of 2,253 metres.

Testing identified approximately 50 metres of gross gas-bearing reservoir, including 43.6 metres of net pay.

The well achieved an average stabilised flow rate of 57.2 MMscf/day over eight hours and 20 minutes, with no formation water recovered.

Importantly, the peak flow rate was constrained by surface testing equipment, suggesting the reservoir's deliverability may extend beyond the rate demonstrated during testing.

Amplitude also reported improved permeability, porosity and deliverability compared with the original Annie discovery.

Drilling progressed ahead of schedule and under budget, with the ECSP drilling programme's general contingency remaining unused.

While longer-term production performance and recoverable reserves require further assessment, the results represent meaningful technical progress.

What Stands Out to Us

Amplitude's opportunity extends beyond a single successful well.

The company combines producing gas assets, established infrastructure and a portfolio of development opportunities in Australia's domestic energy market.

The ECSP targets gross production of up to approximately 90 terajoules per day for at least four years from 2028, assuming development of the Annie, Juliet and Artisan fields.

Amplitude's 50% interest in the relevant Otway Basin joint venture provides exposure to this production growth.

Its financial performance also supports the broader development strategy.

September-quarter production reached a record 7.51 petajoules-equivalent, while quarterly revenue increased to $83.3 million.

Cash rose to $144.2 million, and net debt declined to approximately $31 million.

These figures demonstrate an operating business generating meaningful revenue while advancing its development pipeline.

The main financial consideration remains capital intensity. Amplitude spent $81.1 million on capital expenditure during the quarter, with FY27 guidance of $320 million to $390 million.

Nevertheless, its existing production and infrastructure provide an important foundation for funding future growth.

What Amplitude Energy Is Doing Now

Amplitude is progressing the ECSP following its September final investment decision, with attributable development expenditure estimated at $190 million to $210 million across FY27 and FY28.

The company expects to fund this expenditure through existing cash reserves and operating cash flow.

Foundation gas supply agreements with AGL and EnergyAustralia strengthen the project's commercial pathway.

Amplitude is also preparing to drill the Nestor exploration prospect, with estimated additional drilling and completion costs of $70 million to $80 million for its share.

Meanwhile, the Patricia Baleen Restart Project is progressing towards a potential investment decision in early 2027.

Together, these initiatives could diversify production sources, extend infrastructure utilisation and support longer-term cash generation.

Insight: Is Amplitude Building a Stronger Platform for Gas Growth?

We think Annie-2 represents an encouraging step towards unlocking Amplitude's next production phase. Strong reservoir performance, efficient drilling execution and existing infrastructure improve the credibility of its development strategy. Record quarterly revenue and a strengthening cash position provide further support. Importantly, the ECSP offers a pathway to expanding production without constructing an entirely new processing network. While substantial capital expenditure and project execution remain important considerations, we see a business with improving operational momentum and multiple credible growth catalysts. Updated reserves and future project cash flows will ultimately determine how much additional value can be realised.

What Happens Next?

The next important milestones are updated Annie and Juliet reserve assessments and results from the Nestor exploration well.

Positive outcomes could strengthen the ECSP's resource base and support future production planning.

Progress at Patricia Baleen could provide another development opportunity during 2027.

The longer-term milestone remains first gas from the ECSP in 2028.

For shareholders, the encouraging combination of strong well performance, record quarterly production and expanding development activity creates a compelling operational growth story.

The next challenge is converting that momentum into sustained production growth, disciplined capital spending and stronger free cash flow.