Amplitude Energy (ASX:AEL) and its joint venture partner, OG Energy, have bolstered their development plans in the Offshore Otway Basin by securing a four-year gas sales agreement with EnergyAustralia.
As the country's third-largest electricity and gas supplier, EnergyAustralia's commitment is a major milestone for the Amplitude-led East Coast Supply Project, which is expected to cost over $400 million to develop.
Under the terms of the deal, EnergyAustralia has committed to purchasing 30 petajoules of gas—totalling 7.5 petajoules annually—with supply anticipated to commence in the second half of 2028.
The announcement follows positive drilling results at the Isabella prospect in permit VIC/L24, where the sidetrack well intersected a gas-bearing reservoir, confirming the project's potential.
The agreed gas price reflects prevailing market rates and is subject to annual inflation-based increases.
While the agreement is contingent upon successful final drilling, further data acquisition, and a positive final investment decision, it provides critical commercial underpinning for the venture.
Amplitude CEO Jane Norman noted that interest from other potential customers remains high, with negotiations progressing for additional foundation gas sales agreements.
The project aims to supply the tight Victorian gas market, and following the positive results at Isabella, wireline logging operations are planned to gather further pressure and sample data to inform resource volume estimates.
At the time of reporting, Amplitude Energy's share price was $2.66.