- A Letter of Intent has been issued to Oil States for providing Conductor and Surface Casing & associated services for the proposed Seablue-1 exploration well.
- The PEP 11 gas project is considered as one of the most substantial untested gas exploration plays across Australia.
- The JV plans to drill an exploration well in 125m of water.
Oil and gas player, Bounty Oil & Gas NL (ASX:BUY), shared an upbeat market update provided by its PEP-11 gas project joint venture partner, BPH Energy Limited (ASX: BPH). In the latest move, BPH Energy’s investee company Advent Energy has issued a Letter of Intent, via its subsidiary Asset Energy, to Oil States Industries (Asia) Pte Ltd (Oil States), to provide Conductor and Surface Casing & associated services for the proposed Seablue-1 exploration well.
PEP 11 project in the Sydney Basin Baleen-1 well site location Source: Company announcement 5 July 2021
The PEP-11 gas project is recognised as one of the most significant untested gas exploration plays across Australia. Furthermore, the premium offshore licence covers over 4,659 km2 area, adjacent to the largest gas market in the country.
The Seablue exploration will suffice two primary objectives for the JV partner –
- Testing the gas target
- Assess the potential for Carbon Capture Storage, contingent to funding
The PEP-11 gas project is jointly owned by Bounty (15%) and Advent Energy ltd (85%). The JV partners have been keen on assessing and evaluating the potential for geosequestration of CO2 emissions.
The exploration well will be drilled in 125m of water in the offshore Sydney Basin. The well drilling is contingent on securing funding and regulatory approvals. Once the drilling commences, the final depth will be reached in over 40 days. Once, the exploration well reaches its final depth and is completely evaluated, the well will be plugged off in accordance with the regulatory commitments and the well head and the associated equipment will be removed from the seabed.
Shares of Bounty traded at AU$0.016 a share on 22 September 2021 at 11:07 AM AEST with a market capitalisation of AU$16.44 million.