After launching at drill rig tender program at the end of last month, BPH Energy’s (ASX: BPH) subsidiary Advent has now issued the tender to multiple contractors with semi-submersible drilling units in New South Wales.
At the end of last month, Advent issued a Call for Tender for the provision of subsea wellhead equipment, materials and associated services.
The tender was called in readiness for Advent and its joint venture partner Bounty Oil and Gas’ (ASX: BUY) planned drilling program at PEP-11, which is located in the offshore Sydney Basin in NSW.
At PEP-11, the joint venture plans to complete the Baleen-1 gas exploration well.
It will be drilled in 125m of water and located about 26km offshore.
Testing for hydrocarbon and carbon storage
Advent anticipates it will take about 40 days for the well to reach its planned depth of 3,150m.
The planned depth was increased from 2,150m in early April following a report from Add Energy.
Add Energy’s report included a review of existing data and latest geological prognoses.
The increased depth is designed to target early Permian sandstones for hydrocarbon and carbon storage potential.
Drilling is expected to begin as soon as relevant approvals have been secured.
Carbon storage strategy
With carbon prices expected to surge – driven by a worldwide push to meet net zero emissions – Advent plans to use carbon capture and storage technology, while unlocking the gas potential at PEP-11.
BPH pointed out this technology is already in use at the Gorgon project across the country in Western Australia.
Advent appointed expert Prof Peter J Cook in December last year to advise the team on this strategy.
PEP-11 covers 4,500 square kilometres, with Advent aiming to feed any gas from the permit into east coast market.
BPH has a 33% interest in Advent which owns 85% of PEP-11, with Bounty retaining the remaining 15%.