- BPH Energy Limited’s (ASX:BPH) investee firm Advent has issued another Call for Tender for the proposed Baleen-1 gas exploration well.
- It represents the fourth Call for Tender issued since the commencement of the Baleen tender program in May 2021.
- The PEP11 permit’s significant hydrocarbon potential has been proven by industry standards.
BPH Energy Limited’s (ASX:BPH) investee firm Advent Energy Ltd has issued another Call for Tender for the proposed Baleen-1 gas exploration well. Advent has issued a Call for Tender for the provision of Drilling and Project Management Services for the imminent exploration well.
Advent seems to be making fast-paced progress with regards to Baleen well since the commencement of the Baleen tender program in May 2021. BPH investee has issued almost four Call for Tenders so far since May. Previously, Advent has issued Call for Tenders for the provision of Conductor and Surface Casing & Associated Services, drilling rig services, and long lead items for the proposed well.
These Call for Tenders represent a significant step in the preparation and planning for the proposed Baleen-1 gas exploration well. While issuing these Call for Tenders, Advent is gearing up to initiate drilling at the Baleen target after relevant approvals have been received.
Baleen-1 well drill plan
The Baleen-1 well is proposed to be drilled in 125m of water. The well is situated approximately 26 km offshore and about 30 km SSE of the City of Newcastle. As per Advent, the drilling of the Baleen-1 well is likely to take nearly 40 days to reach total depth. Besides, the drilling is subject to regulatory approvals.
While the planned depth of the Baleen-1 well was initially 2,150m, it was increased to 3,150m in April 2021 to target early Permian sandstones for carbon storage & hydrocarbon potential.
Notably, the drilling of the Baleen-1 well has two key objectives - a gas target and evaluation for Carbon Capture Storage (CCS) - subject to funding and regulatory approvals. CCS is a key clean energy technology, which holds the potential to help address climate change and mitigate greenhouse gas emissions.
Advent informed that the well will be plugged and abandoned as per regulatory requirements after it has reached total depth and been fully evaluated. This will be done in line with pre-drill planning as an exploration well. Then, the well head and associated equipment will be removed or taken off from the seabed.
Significant hydrocarbon potential of PEP11 permit
The Baleen-1 well is situated in the PEP11 permit, which is co-owned by Advent (85 per cent) and Bounty Oil & Gas NL (15 per cent). The PEP11 permit’s significant hydrocarbon potential has been proven by industry standards.
The permit’s potential is evident in the significant and complimentary hydrocarbon migration features observed. Meanwhile, direct hydrocarbon indicators have been identified in seismic data.
In its latest presentation, BPH highlighted that hydrocarbon seepage has been observed and recorded via Landsat across areas of the PEP11 permit. Echosounder seeps and sizeable pockmarks have also been observed within the permit area.
Repeated Hydrocarbon seep samples demonstrate a thermogenic source with liquid components indicated, while independent inshore Hydrocarbon Seep Gas analysis shows high gas content in the permit. It is worth noting that the active seeps and migrated hydrocarbons are a key indicator of ongoing hydrocarbon generation.
As of 2:27 PM AEST, BPH shares are trading at AU$0.073.