Amplitude Energy (ASX:AEL) announced a setback in its Victorian offshore operations, confirming that the Isabella gas discovery in the Otway Basin has been assessed as non-commercial.
Following the completion of a flow test and pressure build-up period at the ST-1 sidetrack well, data revealed significant pressure depletion, leading the company to conclude that the field cannot support commercial development at its current location.
As a result, the well is slated to be plugged and abandoned in the coming days, after which the Transocean Equinox rig will be released to the next member of the basin’s rig consortium.
Despite the disappointing result at Isabella, which was a primary target for the East Coast Supply Project, Managing Director and CEO Jane Norman remains optimistic about the broader drilling program.
Norman noted that while Isabella presented high geological complexity, other prospects in the Otway Basin feature simpler structures that maintain a high probability of success.
The company confirmed that the drilling program remains within budget, and plans for the ECSP are currently unchanged.
Amplitude Energy intends to defer its final investment decision for the development phase until the drilling of subsequent wells, which is scheduled for the second half of 2026.
The company maintains its original target for "first gas" by 2028, as it begins the process of integrating the geological data gathered from the Elanora and Isabella sites to refine future exploration strategies.