Amplitude Energy's (ASX:AEL) East Coast Supply Project is a "compelling" growth opportunity, said Euroz Hartleys in a Monday note.

The company has signed a binding interim joint venture agreement with OG Energy's subsidiaries to develop the East Coast supply project where OG Energy will cover 50% of future project costs and will reimburse Amplitude for 50% of historical costs, totaling about AU$25 million as of Jan. 31.

The research firm said that the company is a "high conviction" buy at the current share price which has not yet digested the delivered certainty of the company.

The research firm also noted that the East Coast Supply Project represents one of the largest sources of potential supply to the forecast short East Coast domestic gas market and the company is fully funded to execute the project with a AU$150 million underlying free cash flow per year.

Euroz Hartleys maintained Amplitude Energy's buy rating and price target of AU$0.36.

The company's shares fell 2% in recent Tuesday trade.