Amplitude Energy will acquire a 50 per cent interest in the Artisan gas field from Beach Energy as it moves to accelerate development of its East Coast Supply Project (ECSP) in the offshore Otway Basin.
Under the deal, Amplitude will pay $58.3 million upfront for the stake in VIC/L35, while O.G. Energy will acquire a further 10 per cent interest on the same terms, leaving both companies with 50 per cent ownership of the asset.
The acquisition is expected to fast-track targeted gas production to 2028 through integration with Amplitude’s existing Offshore Otway Basin infrastructure, including the Athena gas plant and the Casino-Henry-Netherby pipeline.
Amplitude managing director and chief executive Jane Norman said the transaction would strengthen the economics of the East Coast Supply Project and improve gas supply certainty for customers in southern Australia.
“This is a win-win for Amplitude, O.G. Energy and Beach with respect to optimising our respective Otway Basin positions,” Norman said.
“We expect to rapidly move to FID on the development phase of the ECSP over the next few months while the drilling of the Juliet and Annie wells is conducted, with Juliet now brought forward and drilling expected to commence by late July or early August.”
Norman said the combined Annie and Artisan resources would underpin the project, with further upside possible from future discoveries.
“Annie and Artisan together provide the base resource for the ECSP, with project economics potentially further improved by Juliet and/or Nestor discoveries,” she said.
“This transaction provides significant value and optionality for the ECSP and provides customers with certainty in an uncertain market.”
Amplitude said initial technical work indicated Artisan gas was compatible for processing through the Athena gas plant and noted the field’s proximity to existing infrastructure would reduce development costs.
Adding Artisan to the ECSP bolsters the gas available to southern market customers. Its proximity to demand centres in Victoria and South Australia provides greater certainty of deliverability, ability to support longer-term offtake confidence, and lower delivered cost through avoidance of long-haul transportation exposure.