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Summary
- PEP 11 literature review has determined key studies conducted by previous tenement joint holders Santos and Ampolex, which provide support to Advent for the upside potential of offshore Sydney Basin hosting PEP 11 permit.
- Santos 1990 Study highlighted the offshore Sydney Basin’s potential for gas and identified ten structural leads in four structural provinces.
- PEP 11 represents an exclusive opportunity to explore a frontier Permo-Triassic basin complex comprising an active petroleum system with mature source rocks, close to Australia’s most strategic gas market.
- The major gas supply issues developing in eastern Australia has created a considerable market opportunity for Advent to raise the funding to drill Baleen target in order to advance the development of PEP 11 project.
In a latest update, BPH Energy Limited (ASX:BPH) has notified Advent Energy’s identification of different studies from a literature review of PEP 11 permit in the offshore Sydney Basin.
BPH Energy’s key investee Advent Energy Limited holds an 85 per cent stake in PEP 11 permit, which remains one of the most prominent untested gas plays in Australia. Advent’s initial objective is to proceed with well-drilling at Baleen target in PEP 11 permit, following the approval from regulatory authorities, including NOPTA (National Offshore Petroleum Titles Administrator).
PEP 11 is a high impact exploration project, located immediately adjacent to Australia’s largest domestic gas market. PEP 11 literature review has determined key studies conducted by previous tenement joint holders Santos and Ampolex, which provide support for the upside potential of offshore Sydney Basin hosting PEP 11 permit.
Key Highlights from Santos 1990 Study
A study “Geological and Geophysical Interpretation report for activities in Permit Year 1” produced by Santos in 1990 on the Offshore Sydney Basin highlighted:
- the offshore Sydney Basin was prospective for gas
- ten structural leads were identified in four structural provinces with an aggregate potential gas- in- place of 1 Trillion Cubic Feet (TCF)
The study undertaken by Santos on the Offshore Sydney Basin of NSW included the initial seismic survey performed in 1981.
The PEP 11 area NSW (earlier NSW P10) extends across majority of the shallow (less than 200m) offshore Sydney basin covering 4,576 sq km. The Offshore Sydney Basin is gas-prone with hydrocarbon shows endorsing the evaluation that the Basin has an active petroleum system.
Ten structural leads were identified by Santos in 1991 in the PEP 11 offshore area across four different structural provinces as mentioned below:
Prior to the Santos 1990 study, an Esso/BHP JV drilled Australia's first offshore well in 1965, unearthing Barracouta gas field in Bass Strait, which now has about 23 offshore platforms and installations. Australia’s first offshore oil field, Kingfish was also discovered in Bass Strait - the region which continues to deliver crucial energy to Australian.
Presence of Active Hydrocarbon System in Offshore Sydney Basin
Analagous to major discoveries in Queensland’s Surat/Bowen Basin, an active hydrocarbon system has also been shown in offshore Sydney Basin.
Offshore oil and gas seeps have been logged from Long Reef to Catherine Hill Bay, which triggers slick occurrences along the coast, particularly in Cape Three Points, Terrigal area. These occurrences further support the evaluation that the offshore Sydney Basin has an active petroleum system.
Market Opportunities for PEP 11 Permit
PEP 11 represents an exclusive opportunity adjacent to Australia’s most strategic gas market.
Subsequent to the 1981 seismic survey, further seismic surveys were undertaken in PEP 11 permit in 1991, 2004, and 2017.
Following its review of the available seismic, Pangean Resources concluded in its 2010 report: “Undiscovered gross prospective recoverable gas resources for structural targets within the PEP11 offshore permit have been estimated at 5.7 Tcf (at the Best Estimate level).” The report further supports considerable gas generation potential of PEP 11 permit.
The major gas supply issues developing in eastern Australia has created a considerable market opportunity for Advent to raise the funding to drill Baleen target in order to advance the development of PEP 11 project.
Both Australian Competition and Consumer Commission (ACCC) and Australian Energy market Operator (AEMO) have lately highlighted potential gas supply shortages emerging on the east coast of Australia in their latest reports, as highlighted below:
The emerging gas supply crisis in Australia provides a clear opportunity for BPH Energy’s investee Advent to participate in the nation’s gas market. Robust findings from literature review further bolster Advent’s potential to satisfy mounting gas demand from high-grade PEP 11 permit.
BPH traded at $0.024 on 1 July 2020, with a rise of 4.3 per cent (11:20 AM AEST).
