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Summary
- BPH has updated the market with the findings of a geochemical report that provided support to its investee Advent Energy for a well-drilling within PEP 11.
- The geochemical report endorses that the area encircling the planned drilling site on the Baleen Prospect seems best for hydrocarbon influence in comparison to background samples.
- The report highlighted that the Baleen Prospect seems to hold a higher likelihood of success than other prospects.
- BPH is in the process of raising over $2.8 million capital to increase its existing shareholding in Advent from 23 per cent to 36 per cent.
Australia-based diversified company, BPH Energy Limited (ASX:BPH) has recently reported on the geochemical support for the proposed exploration well within Advent Energy Limited’s PEP 11 permit, in the offshore Sydney Basin.
BPH holds a significant stake in oil and gas player, Advent which further holds about 85 per cent interest in the highly prospective PEP 11 permit via Asset Energy Pty Ltd.
Earlier this week, BPH published a presentation summing up the geological and geophysical basis for Advent’s planned exploration well at Baleen within PEP 11. The Company has now updated the market with the findings of a geochemical report that provided support for a well-drilling with PEP 11.
Key Highlights of PEP 11 Geochemical Report
The geochemical report examined the hydrocarbon analysis performed on sediment samples collected within PEP 11 permit during 2010. The sediment samples were obtained from multiple sites at possible drilling targets.
Utilising an exclusive commercial hydrocarbon adsorption and laboratory analysis technique, the geochemical investigation evaluated the levels of hydrocarbons occurring naturally in the seabed sediment samples.
The geochemical report endorses that the area encircling the planned drilling site on the Baleen Prospect seems best for hydrocarbon influence in comparison to background samples, as indicated in the below figure.
Two key conclusions were drawn from the report, as listed below:
- The geochemical data acquired in 2010 supports the discovery of reliable backgrounds and also primary hydrocarbon influence locations, regardless of active gas seeps which seem ubiquitous across the area of interest.
- The Baleen Prospect seems to hold a higher likelihood of success than other prospects.
An article ‘Surface geochemical exploration for oil and gas: New life for an old technology’ published by The Leading Edge in 2000 by D. Schumacher, highlighted – “A recent review of over 850 wildcat wells – all drilled post geochemical surveys – discovers that 79 per cent of wells drilled in favorable anomalies led to commercial oil and gas discoveries.”
Interesting Read! BPH’s Investee Advent Reports Another Set of Significant Findings from PEP 11 Literature Review
Capital Raising to Support PEP 11 Developments
Recently, BPH unveiled a Placement (~$450k) and non-renounceable Rights Issue (~$2.42 million) to raise over $2.8 million, the proceeds of which would be used to increase BPH’s existing shareholding in Advent from 23 per cent to 36 per cent.
While the Company has already completed the Placement raising, it has recently extended the closing date of Rights Issue to 24th August 2020 amid non-receipt of the offer document by several shareholders and COVID-19-induced delays in the mail system.
BPH has planned to invest the funds raised from Rights Issue and Placement in Advent to support its progress with well planning, engineering and environmental approvals for drilling at the Baleen drill target. Notably, Advent’s application submitted to National Offshore Petroleum Titles Administrator (NOPTA) earlier this year to enable the drilling of the Baleen drill target, has also reached its final decision stage.
With Advent anticipating the receipt of final decision from NOPTA shortly, prospects of commencement of well-drilling at Baleen target appear bright. Moreover, the similarities identified between PEP 11 and similarly aged structures generating gas in the Bowen Basin, along with the geochemical report conclusions support PEP 11’s potential for the discovery of gas.
BPH traded at $0.033 on 18 August 2020 (11:54 AM AEST).
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