Amplitude Energy Takes Stake in Artisan Gas Field

Amplitude Energy has signed a binding agreement to purchase a 50% interest in VIC/L35, containing the Artisan gas field in the Offshore Otway Basin, Australia, from Beach Energy.

Artisan is an existing discovered resource in the Offshore Otway Basin, accelerating target gas production to 2028 together with the East Coast Supply Project (ECSP).

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 agreement, 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 said the transaction 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