Highlights:

• BPH Energy Ltd has rolled out its report for the September 2022 quarter.
• A key development is the company acquiring a 10% interest in Clean Hydrogen Technologies, a growing hydrogen player.
• Another important development during the quarter is the update on Asset Energy’s (investee of BPH) application in the Federal Court of Australia against former Prime Minister Scott Morrison’s decision of not renewing the PEP-11 exploration permit.
• BPH’s investee, Cortical Dynamics, is going places with its BARM™ (Brain Anaesthesia Response Monitor) technology.

ASX-listed energy investment company BPH Energy Ltd (ASX:BPH) has shared its September 2022 quarter update. The company saw a lot of important business activities during the quarter. Let us understand in detail how BPH progressed during the quarter.

Acquiring 10% equity in Clean Hydrogen Technologies Corporation

Source: © Chingyunsong | Megapixl.com

BPH and its investee Advent Energy Ltd (Advent) have now settled for acquiring an interest of 10% (8% BPH and 2 % Advent) in the hydrogen technology company Clean Hydrogen Technologies for US$1,000,000. BPH’s shareholders had unanimously approved the investment in Clean Hydrogen Technologies Corporation at a shareholder meeting in June 2022.

Image: © 2022 Kalkine Media®

Capital raising: entitlement and placement

On 18 August 2022, the company informed the market that it had got binding commitments to raise a total of approximately AU$1.5 million (before costs) (placement).

Source: © Iqoncept | Megapixl.com

Also, a non-renounceable entitlement offer was launched by the company to raise ~AU$400,000 (before costs).

Further, the company also plans, subject to ASX approval and in compliance with the Corporations Act, to undertake a loyalty option issue of one option for every eight shares held to all shareholders registered on a record date proposed to be on or around late November 2022. The loyalty options will have the same exercise price and expiry date as the attaching options.

BPH intends to use the funds as follows:

• AU$0.90 million – investing further in Clean Hydrogen Technology.
• AU$0.68 million – funding the exploration and development of investments related to oil and gas.
• AU$0.32 million – working capital.

After the period end, the company made an announcement that it had received binding commitments to raise approximately AU$1.196 million (before costs) in two tranches.

Significant activities by investee companies during the quarter

This quarter was quite eventful for two of BPH’s investees: Advent Energy Pty Ltd and Cortical Dynamics Limited.

Advent Energy Pty Ltd – BPH’s 36.1% direct interest

1. Exploration permit for Petroleum No. 11

Advent’s wholly owned subsidiary Asset Energy Pty Ltd has applied to the Federal Court of Australia to review the Commonwealth-New South Wales Offshore Petroleum Joint Authority (Joint Authority)’s decision to

• refuse to vary and suspend the conditions of the PEP-11 permit, and
• refuse to increase the term of the said permit.

The application was made in January 2020.

The timeline saw media coverage that former Prime Minister Scott Morrison had exercised ministerial powers to block the PEP-11 gas exploration licence.

Source: © Pattanaphongphoto | Megapixl.com

Following this, in June 2022, Asset Energy Pty Ltd alleged in the Federal Court that Scott Morrison was biased and had not implemented procedural fairness in his decision of not granting an extension of term, and not granting a suspension and variation of the minimum work requirements, under PEP-11.

After the confirmation that Scott Morrison took responsibility in multiple portfolios, including Resources, Prime Minister Anthony Albanese asked for advice on whether Mr Morrison’s appointments and decisions (including the PEP-11 decision) were beyond power.

2. Taranaki Basin

On 4 April, the company announced that Advent had the right to acquire a 30% participating interest in three petroleum exploration permits (PEPs), 57075, 60092, and 60093, covering 5,180 km² in the Taranaki Basin from OMV New Zealand Limited (OMV NZ).

The three permits are governed by identical individual joint venture operating agreements (JVOAs) and, as such, each intersects in the same fashion with the farm-out agreement (FOA). The FOA covers all three permits.

The following are conditions precedent to the FOA:

Image: © 2022 Kalkine Media®

The FOA was executed on 24 December 2021, and the six-month period expired on 24 June 2022. BPH states that no action is required or will be taken by either Advent or OMV NZ considering both parties plan to go ahead and have AOLNZ on permit titles pending the Ministry of Business, Innovation and Employment’s ongoing process.

Cortical Dynamics Limited

An Australian-based medical device neurotechnology company, Cortical is developing BARM™ (Brain Anaesthesia Response Monitor), which it views as an industry-leading monitor for EEG (electrical activity) brain function.

BARM™ has already received TGA approval, Korean MFDS approval, and the CE mark, and is pending FDA approval. Cortical has obtained a patent (application no. 17/614701) for its BARM technology in the United States. The company also has patents awarded in France, Belgium, Germany, Great Britain, the Netherlands, Switzerland, Italy, Ireland, Australia, New Zealand, Japan, and China.

Further, Cortical has partnered with the Austrian EEG experts ‘ENCEVIS /AIT’ to further enhance the BARM™ technology.

In June 2022, Cortical secured a prestigious grant from the MTPConnect BMTH program, following which it looks forward to developing an AI and machine learning capacity for BARM™.

BPH’s stock was trading at AU$0.022 as on 18 November 2022, 02:48:01 PM AEDT.