• Amplitude Energy to acquire 50% of Artisan: an existing discovered resource(1) in the Offshore Otway Basin, accelerating target gas production to 2028 together with the East Coast Supply Project (ECSP)(2)
• O.G. Energy will acquire a further 10% of Artisan, on the same commercial terms as Amplitude Energy: aligning interests at 50% each
• ECSP economics improved by consolidating discovered gas at both Artisan and Annie: exploration success at Juliet and/or Nestor would further improve project economics and have synergies with Artisan
• Attractive acquisition price: $58.3 million net upfront cash payment by Amplitude Energy, equivalent to approximately $2/GJ, fully funded through existing sources, plus a future royalty payable on production, capped at 62 PJ gross (31 PJ net to AEL)
• Value maximising for shareholders: Acquisition is expected to be NAV accretive to Amplitude Energy, and earnings accretive from the commencement of production from Artisan(3) with the company to retain a strong balance sheet on completion, supported by strong free cash generation

Amplitude Energy has signed a binding Sale and Purchase Agreement (“SPA”) to purchase a 50% interest in VIC/L35, containing the Artisan gas field in the Offshore Otway Basin, from Beach Energy. The SPA is conditional on certain events described below, with further details in Appendix A.

As part of the SPA, O.G. Energy has agreed to purchase a 10% interest in Artisan on the same commercial terms, such that Amplitude Energy and O.G. Energy each have aligned 50% interests in the asset. Amplitude Energy’s net share of acquisition consideration consists of an upfront cash payment of $58.3 million on completion of the SPA, plus a royalty of A$3.75/GJ (nominal) over its share of future Artisan
production (capped at 62 PJ gross, or 31 PJ net to AEL).

Managing Director and CEO Jane Norman commented that the transaction announced today accelerates the production of Artisan’s resource and further improves ECSP economics.

“Producing Artisan through Amplitude Energy’s existing infrastructure allows faster and lower-cost development of this gas for the east coast domestic market. Artisan development costs will significantly benefit from leveraging the existing ECSP program and our readily-available infrastructure. This is a win-win for Amplitude, O.G. Energy and Beach with respect to optimising our respective Otway Basin positions.”

“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. Annie and Artisan together provide the base resource for the ECSP, with project economics potentially further improved by Juliet and/or Nestor discoveries. This transaction provides significant value and optionality for the ECSP and provides customers with certainty in an uncertain market.”

About Artisan

Artisan is a discovered gas field, containing an existing contingent resource reported by Beach Energy in its FY21 Annual Report(1). The field is situated approximately 17km south-east of Amplitude Energy’s existing Offshore Otway Basin pipeline. The Artisan discovery was made by the Beach Energy (60%) and O.G. Energy (40%) joint venture in March 2021, with the well suspended at that time for future development. In September 2024, a Production Licence VIC/L35 covering the Artisan field was granted. 

(1) Beach Energy has prepared and included contingent resource estimates for Artisan in its Reserves Statement within its FY21 Annual
Report on 16 August 2021. 
(2) No final investment decision has been taken in relation to development of the ECSP or the Artisan field as a result of this announcement. 
(3) Assuming final investment decision on the ECSP, development of the Artisan field within the ECSP, and other AEL mid-case assumptions.

KeyFacts Energy: Amplitude Energy Australia country profile