Quarterly Recap: BPH Energy (ASX: BPH) expands investments and strengthens financial position

Highlights

• BPH Energy’s investee Asset Energy made progress for the proposed well drilling at PEP 11.
• The quarter saw a five-year licence renewal in the Northern Territory.
• BPH raised AU$1 million through a placement.
• The company closed the period with a cash of over AU$6.42 million.
• BPH plans to seek shareholder approval for the proposed issue of shares in investee company Clean Hydrogen to BPH.

BPH Energy Ltd (ASX: BPH) has released its quarterly report for the period ended 30 June 2024, highlighting advancements in its biotechnology and resources investments.

The diversified company holds a 35.8% direct interest in Advent Energy Limited, an oil & gas exploration company operating diverse onshore and offshore assets across Australia. Advent, through its subsidiary, Asset Energy Pty Ltd, holds an 85% interest in the Petroleum Exploration Permit 11 (PEP 11) in the offshore Sydney Basin, with Bounty Oil & Gas NL holding the remaining 15%. PEP 11 is estimated to contain approximately 5.7 trillion cubic feet of potential recoverable gas resources.

BPH Energy has made investments in Clean Hydrogen Technologies, initially acquiring a 10% stake for AU$ 1 million and subsequently increasing its ownership to 15.6% through a loan conversion agreement. Another investee company is Cortical Dynamics Limited, an Australia-based neurotechnology firm developing BARM™, an EEG (electrical activity) brain function monitor.

BPH strengthens capital position

During the three-month period, BPH raised AU$1 million through a placement of 50 million new shares at an issue price of AU$0.02 per share. These funds will be directed towards the exploration and development of oil and gas investments, as well as initiatives at Cortical Dynamics.

As of quarter-end, BPH held a cash and cash equivalent balance exceeding AU$6.42 million.

Appointment of Klarite for environmental management of Seablue-1

During the quarter, Asset Energy appointed Klarite Pty Ltd to commence environmental management of the Seablue-1 exploration well, which is planned to be drilled in PEP-11. This development is subject to the current application for licence variation, suspension and extension (Application), regulatory approvals and rig availability. 

Recognising the Federal Government's Future Gas Strategy (FGS), which emphasises the critical need for new domestic gas supplies, Asset Energy has begun the necessary work for environmental approvals in advance of the PEP 11 license application approval.  

Klarite will prepare an Environmental Management process that outlines the basis for Asset Energy’s consultation and negotiation with relevant stakeholders and assesses environmental impacts.

 Renewal of RL1 in the Northern Territory

Onshore Energy Pty Ltd, a subsidiary of Advent Energy, holds a 100% stake in RL1 and operates the Retention Licence in the onshore Bonaparte Basin. This basin, located in northern Australia, has substantial prospective potential for oil & gas reserves, covering 250,000 km² offshore and 20,000 km² onshore. It is recognised as one of most prolific offshore hydrocarbon-producing basins of Australia.

RL1, which covers an area of 166 km² and includes the Weaber Gas Field first discovered in 1985, was renewed for another five years during the quarter.

BPH boosts stake in Clean Hydrogen

BPH currently holds a 15.6% stake, while Advent owns a 3.9% stake in Clean Hydrogen. The securities anticipated under the Loan Conversion Agreement have not yet been issued to BPH and Advent. BPH plans to seek shareholder approval for the proposed issue of shares in Clean Hydrogen to BPH to satisfy a debt owed by Advent Energy Limited to BPH.

BPH shares traded at AU$0.019 apiece on 18 July 2024.