Amplitude Energy's (ASX:AEL) intersection of a gas-bearing reservoir offshore Victoria is a "strong result" that de-risks the Juliet-1 exploration prospect into a proven gas discovery, Euroz Hartleys said in a Tuesday note.
The well intersected the primary Waarre C reservoir at 2,129 meters true vertical depth subsea, recording elevated gas readings coincident with heightened resistivity and confirming a gas-bearing reservoir.
The reservoir's quality and thickness are in line with pre-drill expectations, and the well is currently ahead of schedule and budget, the equity research firm said.
"With exploration success now achieved, we expect to remove the exploration risk weighting applied to Juliet in our valuation, subject to the upcoming resource and well evaluation work," Euroz Hartleys said.
The firm maintained a buy recommendation for Amplitude Energy on valuation grounds, with its price target of AU$2.80 per share under review.
Amplitude Energy shares jumped 12% in recent Tuesday trade.