After emerging from a self-imposed trading suspension BPH Energy (ASX: BPH) revealed its investee Advent Energy’s drilling application for PEP11 in offshore New South Wales has undergone NOPTA assessment with a final decision and anticipated approvals imminent on the application made to NOPTA as announced to ASX in Feb this year.
BPH Energy owns almost 23% of Advent, which in turn holds an 85% interest in PEP11, with Bounty Oil and Gas (ASX: BUY) holding the remaining 15%.
Advent and Bounty applied to the National Offshore Petroleum Titles Administer to vary the permit conditions to enable the drilling of the Baleen target within the permit.
According to BPH Energy, PEP11 covers 4,576 square kilometres and hosts “significant structural targets” that are believed to possess multi trillion cubic feet natural gas resources.
The company added PEP11’s location in the offshore Sydney Basin adjacent to the NSW coast gave it the capability of supplying the east coast gas market, which is the largest gas market in Australia.
“PEP11 remains one of the most significant untested gas plays in Australia,” BPH Energy stated.
“The PEP11 joint venture has demonstrated considerable gas generation and migration in the offshore Sydney Basin, with the previously observed mapped prospects and leads being highly prospective for gas.”
BPH Energy added that Australia’s east coast gas supply crisis represented a “significant market opportunity” for Advent and Bounty.
Previous work at PEP11 has involved a 200-line kilometre 2D seismic survey in 2018 over the Baleen drill target as a necessary precondition to the drilling program.
Cashed up and on the hunt for new opportunities
In late May, BPH Energy completed a $333,600 placement via the issue of 37 million shares at $0.009 each.
Placement proceeds will be used towards identifying and evaluating new investment opportunities for the company.
The hunt for new opportunities follows the mutual termination of an COVID-19-related transaction that was subject to a 60-day due diligence period.
Additionally, Advent and its wholly-owned subsidiary Asset Energy have served notices of demand on MEC Resources (ASX: MMR) to recover more than $835,000 in costs incurred.
MEC has allegedly claimed these costs as research and development tax incentives with the Australian Taxation Office.
BPH Energy noted that MEC had recorded a liability of $593,796 payable to Asset in its December 2019 half year financial report.
“Therefore, it is our understanding that they do not contest the Asset claim against MEC nor its validity as a current liability,” BPH Energy added.
MEC has been suspended from official quotation since mid-January this year.