- BPH Energy Limited’s (ASX:BPH) investee Advent has issued a Call for Tender for the provision of drilling rig services for the Baleen-1 gas exploration well.
- The Baleen-1 well, located in the PEP11 permit, is planned to be drilled in 125 metres of water.
- At the end of last month, BPH informed about the issuance of a Call for Tender for long lead items for the Baleen well.
Diversified player BPH Energy Limited (ASX:BPH) has recently announced that a Call for Tender has been issued for the provision of drilling rig services for the Baleen-1 gas exploration well. The tender has been issued to several drilling contractors who have semi-submersible drilling units in the region.
Following the key update, BPH shares surged by over 3.4 per cent to AU$0.091 as of 11:22 AM AEST.
The Baleen prospect is located in the high-value PEP11 permit, which is co-owned by BPH investee Advent (85 per cent) and Bounty Oil & Gas (15 per cent). The PEP11 Joint Venturers are planning to carry out drilling at the Baleen prospect for potential gas discovery.
Baleen-1 well drill plan
The Baleen-1 well, located about 26 km offshore and around 30 km SSE of the City of Newcastle, is planned to be drilled in 125 metres of water. The drilling of the Baleen-1 well is anticipated to take approximately 40 days to reach total depth and is subject to regulatory approvals.
In April this year, the planned depth of the Baleen well was increased from 2,150 metres to 3,150 metres. The increased depth has been designed to target early Permian sandstones for both carbon storage and hydrocarbon potential.
Importantly, the drilling of the Baleen-1 well has two objectives - evaluation for Carbon Capture Storage and a gas target - subject to funding.
BPH highlighted that once the well has reached total depth and been fully evaluated, it will be plugged and abandoned in conformity with pre-drill planning as an exploration well. Thereafter, the well head and associated equipment will be taken off from the seabed.
Baleen tender program commenced
At the end of last month, the Company notified about the commencement of the Baleen tender program. The Company informed that a Call for Tender has been issued for long lead items for the Baleen well in the PEP11 permit. The tender was issued for the provision of materials, subsea wellhead equipment, and other related services for the proposed Baleen drill program.
The initiation of the tender program is a crucial move in the planning and preparation for the Baleen-1 well. The step ensures that Asset Energy will be ready to start drilling at the Baleen target after receiving the relevant approvals. Asset Energy is a wholly owned subsidiary of Advent Energy Ltd, through which the latter holds a stake in the PEP11 permit.