Shares in Amplitude Energy experienced a significant drop, plunging as much as 24 per cent, following an announcement that its Elanora-1 exploration well, located off the Victorian coast, encountered water instead of the anticipated gas. Amplitude Energy is a junior gas exploration company focused on developing gas resources for the Australian domestic market. The Elanora-1 well was the first to be drilled as part of the company’s East Coast Supply Project. The project aims to supply gas to the tightly constrained Victorian market.
The drilling venture is jointly owned, with Amplitude Energy holding a 50 per cent stake and OG Energy owning the remaining 50 per cent. The well targeted a specific reservoir within the project area. Amplitude’s Chief Executive Officer, Jane Norman, expressed disappointment with the outcome. However, she affirmed that the drilling campaign would proceed as planned with the Isabella prospect, which is located within the same permit area and targets a separate reservoir. According to Ms. Norman, the Elanora result does not alter the company’s assessment of the likelihood of success at the Isabella prospect.
The Elanora-1 well is the first to be drilled in the company’s East Coast Supply Project, which is targeting domestic gas for the tight market in Victoria. The drilling venture, which was aiming at a reservoir, is owned 50 per cent by Amplitude, the former Cooper Energy, and 50 per cent by OG Energy.
The setback at Elanora follows a similar disappointment last month, where a second well drilled by a ConocoPhillips-led venture in Victoria’s offshore Otway Basin also failed to meet expectations, further highlighting the challenges in offshore gas exploration in the region.
