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BPH Energy update: Additional call for tender issued for Advent’s upcoming exploration well

Summary

  • BPH Energy Limited (ASX:BPH) informed that a Call for Tender has been issued for the provision of Conductor and Surface Casing and Associated Services for Advent’s imminent exploration well.
  • Advent is planning to undertake drilling at the Baleen prospect for potential gas discovery.
  • The drilling of the Baleen well is likely to take nearly 40 days to reach total depth and is contingent upon regulatory approvals.

Diversified player BPH Energy Limited (ASX:BPH) has recently announced that a Call for Tender has been issued for the provision of Conductor and Surface Casing and Associated Services for Advent’s imminent exploration well.

Last month, a Call for Tender was also issued for the provision of drilling rig services for the proposed Baleen-1 gas exploration well.

Read More at BPH investee Advent issues rig tender for Baleen-1 exploration well

BPH owns a significant stake in Western Australia-based Advent Energy Ltd, whose principal activity is to maximise its gas resources. Initially, Advent’s focus is to carry out drilling at Baleen target, situated in the high-grade PEP11 permit offshore New South Wales (NSW). Advent considers the PEP11 permit as a significant multi-Tcf natural gas project.

The PEP11 permit is located in the Sydney Basin, which is a proven hydrocarbon basin with excellent potential for further discovery of natural gas. Besides, the Sydney Basin encompasses all the elements seen in other producing top-notch petroleum basins, including Prospective Resources of 5.7 trillion cubic feet (P50) in structural targets.  

Also Read: Government report lifts BPH Investee Advent’s confidence in PEP11 project

Baleen-1 well drill plan

The PEP11 Joint Venturers, Advent (85 per cent) and Bounty Oil & Gas (15 per cent), intend to undertake drilling at the Baleen prospect for potential gas discovery.

The Baleen-1 well is planned to be drilled in 125 metres of water, about 26 kilometres offshore and around 30 kilometres SSE of the City of Newcastle. The drilling of the Baleen well is likely to take nearly 40 days to reach total depth and is contingent upon regulatory approvals.

The planned depth of the Baleen well was recently increased from 2,150 metres to 3,150 metres to target early Permian sandstones for carbon storage as well as hydrocarbon potential.

Do Not Miss: BPH Investee Advent Makes an Appointment to Prepare Environmental Plan for Baleen-1 Target

BPH stated that the Baleen well will be plugged and abandoned as per regulatory requirements, in accordance with pre-drill planning as an exploration well, once it has reached total depth and been fully assessed. Afterwards, the well head, as well as associated equipment, will be removed from the seabed.

Objectives of Baleen-1 well

The Baleen-1 well primarily has two objectives: a gas target and evaluation for Carbon Capture Storage (CCS), subject to funding.

CCS is a key clean energy technology and a part of a suit of solutions with the potential to mitigate greenhouse gas emissions and help address climate change. The Intergovernmental Panel on Climate Change and International Energy Agency believe that Carbon Capture Storage will play a crucial role in helping to meet global emission reduction targets.

Moreover, the Offshore Sydney Basin offers the potential opportunity for NSW to make deep cuts in its CO2 emissions through CCS. It is worth noting that the Sydney Basin is a major contributor to Australia’s greenhouse gas emissions and contains the largest number of stationary CO2 emission sources in Australia.

BPH informed that the offshore Sydney Basin Baleen drill test will investigate the potential future storage capacity for CO2 emissions concurrently with the gas drill program, subject to approvals and funding. Besides, finding gas closest to Australia’s biggest domestic energy market can be used to provide reliable backup for increased uptake of renewable energy in NSW.

BPH shares are trading at AU$0.074 as of 3:35 PM AEST.

Must Read: BPH Energy (ASX:BPH) Announces Commencement of Baleen Tender Program

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