Amplitude Energy's (ASX:AEL) unsuccessful drilling at the Elanora-1 exploration well is disappointing, Euroz Hartleys said in a note on Tuesday.

On Tuesday, the company said the well located in the Offshore Otway Basin, Victoria, penetrated the primary Waarre A reservoir target, and data recorded no elevated gas readings at the reservoir.

The company added that the results do not impact its view on the probability of success for Waarre-C reservoir targets Isabella, Juliet, and fNestor.

However, the results may weigh on near-term market sentiment and arguably increases perceived risk for the Isabella-1 exploration well, Euroz Hartleys noted.

Assuming that the other three wells also prove to be unsuccessful, the financial services firm values the stock at AU$2.80 per share, which is above current share price.

The firm believes that the market is valuing only a very conservative portion of East Coast Supply project's growth.

Euroz Hartleys maintained a buy rating and AU$4.43 price target on Amplitude Energy.

Shares of Amplitude Energy fell nearly 4% in recent Wednesday trade.