S&P/ASX 300 Index (ASX: XKO) energy share Amplitude Energy Ltd (ASX: AEL) is having a day to forget. As are its stockholders.
Amplitude Energy shares closed yesterday trading for $2.67. In early morning trade on Wednesday, shares are changing hands for $1.55 apiece, down 42%.
For some context, the ASX 300 is up 1.2% at this same time.
Here's what's got investors reaching for their sell buttons today.
Image source: Getty Images
What's pressuring the ASX 300 energy stock?
Amplitude Energy shares are taking a tumble after the company released a disappointing update on the drilling operations at its Isabella prospect in the Offshore Otway Basin, located in Victoria.
Amplitude Energy is the operator and 50% interest holder in the joint venture prospect. O.G. Energy holds the remaining 50% interest.
The ASX 300 energy share is drilling the Isabella field as a planned sidetrack from the earlier Elanora-1 well.
Today, the company revealed that pressure depletion during the testing period does not support a commercial development of the Isabella field. The well will now be plugged and abandoned. The company expects to complete that process within the next few days.
On a positive note, Amplitude Energy said that as the project is well-advanced, its East Coast Supply Project (ECSP) plans remain unchanged. The drilling program remains within budget, with the ASX 300 Energy share expecting the next well to be drilled in the second half of calendar year 2026.
A final investment decision (FID) for the development phase of the ECSP will now be deferred until after the new wells are drilled. The company is still targeting first gas from the project in 2028.
What did management say?
Commenting on the abandoned well that's pressuring the ASX 300 energy share today, Amplitude managing director and CEO Jane Norman said, "The result at Isabella is disappointing but geological data from this well will help inform our future exploration prospects."
Norman added:
Isabella was a large and prospective target for the ECSP, however its size also corresponded with reservoir complexity, meaning it will require time to interpret the drilling information received. The result at Isabella does not impact our view on the probability of success of other Otway Basin exploration prospects, which have simpler geology.
How has the ASX 300 energy share been tracking?
With today's huge fall factored in, the Amplitude Energy share price is down 36% since this time last year, well behind the 6.6% 12-month gains delivered by the ASX 300.
