Diversified player, BPH Energy Limited (ASX:BPH) holds investments in a range of sectors, including resources (Advent Energy Ltd), biotechnology (Cortical Dynamics Limited and Molecular Discovery Systems) and medical cannabis (Patagonia Genetics Pty Ltd).
Among these significant investments, BPH holds maximum interest in oil and gas exploration and development entity, Advent Energy Ltd.
BPH Energy is the second largest shareholder in Advent with a direct interest of 22.6 per cent. BPH’s key investee company, Advent possesses offshore (PEP 11) and onshore (EP 386 and RL 1) exploration and near-term development assets around Australia.
PEP 11 Oil and Gas Permit
The offshore Sydney Basin has been lightly explored to date, and its position as the only petroleum title offshore New South Wales provides a considerable opportunity should natural gas be discovered in commercial quantities in this petroleum title.
Advent has 85 per cent interest in PEP 11 permit (via its wholly owned subsidiary Asset Energy Pty Ltd), which is a major offshore exploration region with large scale structuring and potentially multi- Tcf (Trillion cubic feet) gas charged Permo-Triassic reservoirs, situated at less than 50km from the gas pipeline network and greater metropolitan area of Sydney-Wollongong-Newcastle. The remaining 15 per cent stake is held by the JV partner, Bounty Oil & Gas NL (ASX: BUY).
Advent has recently terminated the RL Energy JV Agreement for PEP 11, and the JV is now engaged in evaluating proceeding and assessing the work program with the drilling of a well at the Baleen target, subject to approvals from NOPTA and other regulatory groups.
Development Progress at PEP 11 Permit
Advent has shown significant gas migration and generation within PEP 11 permit, with the mapped leads and prospects largely prospective for the gas discovery. The company’s two core prospects in PEP 11 have previously been calculated via external assessment to have the potential for un-risked (P50) prospective gas resources of 472 and 2,131 billion cubic feet (BCF) respectively, with multi-trillion cubic feet upside.
Advent’s key objective is to drill a well in the PEP 11 permit in 2020 at the Baleen drilling target, at which the company had previously conducted a high resolution 2D seismic survey to assess shallow geohazard indications comprising shallow gas accumulations that can impact future potential drilling operations.
A geochemical report has also supported that the area encompassing the planned drilling spot on the Baleen prospect seems excellent for hydrocarbon influence in comparison to background samples. The Baleen prospect reflected a higher chance of success than the other drilling targets.
A recently conducted review of over 850 wildcat wells, drilled subsequent to geochemical surveys, found that 79 per cent of wells that got drilled in positive anomalies led to commercial oil and gas discoveries.
BPH is currently engaged with investors to fund the drilling at Baleen target in the PEP 11 permit.
EP 386 and RL 1 Permits
Advent holds 100 per cent interest in both the EP 386 and RL (Retention Licence) 1 permits through its subsidiary Onshore Energy Pty Ltd. The permits are situated in the onshore Bonaparte Basin in northern Australia, which is a significantly prospective petroliferous basin, possessing considerable reserves of oil and gas.
Advent has identified significant shale areas in EP 386 and RL 1 and has calculated a best estimate Prospective Resource of 9.8 Tcf for the shale areas. Within EP386, recoverable resource estimates range from Prospective Resources of 53.3 Bcf (Low) to 1,326.3 Bcf (High), with a Best Estimate of 355.9 Bcf of gas.
Backed by its growth-driven strategy, BPH will continue to develop its investee portfolio projects including PEP11, EP 386 and RL1 (Advent’s highly prospective assets) and may evaluate and invest in a range of resource projects in the near future.
BPH last traded at $0.002, up by 100 per cent on 7th November 2019.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.