BPH Energy advances plans to drill for gas off NSW coast, while Cortical secures FDA approval for brain monitoring technology

Diversified energy and scientific company BPH Energy (ASX: BPH) has welcomed news that unlisted oil and gas explorer Advent Energy, in which it holds a significant 36% interest, continues to advance discussions aimed at opening up opportunities to test a high-profile oil and gas permit located off the New South Wales coast.

BPH says Advent and its joint venture partner Bounty Oil & Gas (ASX: BUY) have made good progress in seeking applications for the variation and suspension of work program conditions and related permit extension of the large and highly-prospective PEP-11 licence.

The unlisted petroleum company is currently in negotiations with Australia’s offshore oil and gas watchdog NOPTA (National Offshore Petroleum Titles Administrator).

Additional information provided

At the request of NOPTA, Advent has provided additional information related to

the applications for the variation and suspension of work program conditions and the proposed extension of PEP-11 permit timelines.

At the same time Advent is investigating the potential to contract a mobile offshore drilling unit (MOPU) to drill the proposed Seablue-1 well on the large Baleen prospect.

It has already instigated discussions with a number of drilling contractors along with other local permit operators who have recently contracted rigs for work in the Australian offshore beginning in the first half of 2024.

Significant potential gas resources

Advent holds an 85% interest in PEP 11 and is the operator of the permit, while Bounty Oil & Gas NL holds the remaining 15% interest in the license.

The Baleen prospect is situated in the PEP 11 exploration permit, prospective for natural gas located in the offshore Sydney Basin.

PEP 11 has undergone significant assessment over the years and studies have identified a total P50 prospective resource calculated for the licence of around 5.9 trillion cubic feet.

The Baleen prospect is assessed to contain a P50 prospective resource of 0.475 trillion cubic feet.

Gas market opportunities

Located close to the prime energy markets in Sydney, Wollongong and Newcastle, BPH says a successful Baleen exploration program would open up significant opportunities.

It says analysis by Australian Energy Market Operator (AEMO) suggests that the east coast of Australia is facing potential energy shortfalls, including significant blackouts without access to additional natural gas resources.

In a new report, AEMO highlighted continued risks of short-term gas supply shortfalls and long-term gas supply gaps arising from reducing production from southern Australia. In particular, the risk of peak day shortfalls continues to be forecast under very high demand conditions.

It said extreme weather conditions across southern regions that drive high coincident peak demand for gas consumption may lead to gas shortfalls, particularly if combined with high gas generation (if alternative electricity generation resources are unavailable).

BPH said the report also noted that peak day gas shortfall risks would increase if committed infrastructure developments to reduce transmission constraints were not delivered to schedule.

Science arm receives FDA approval

On the scientific side of its business, BPH Energy’s investee company Cortical Dynamics has hit a significant development milestone, securing Food and Drug Administration (FDA) clearance in the USA for its Brain Anaesthesia Response Monitor (BARM) system version 1.

The clearance is a result of two years’ work post submission in the US in 2021.

BARM’s objective medical brain monitoring technology is capable of measuring both levels of unconsciousness and pain.

The US clearance for BARM version 1 is complemented by existing regulatory approvals in Australia (TGA), Europe (CE) and South Korea (KMFDS).

Earlier this year BARM Pec “plug and play” version 1 was approved as compatible by Philips with its IntelliView operating room monitors earlier this year.

Cortical is working on an enhanced version of BARM with its partner AIT (the Austrian Institute of Technology) based in Vienna which will include upgrades to the software, hardware and firmware.

New chief scientist named

In corporate news, Cortical has appointed the highly regarded Dr Sunil Nagaraj PhD as its new chief scientist.

Dr Nagaraj obtained his master’s degree from the University of Victoria in Canada in 2010; and a doctoral degree from University College Cork, Ireland in 2015.

His doctoral research focused on the development of AI-based real-time brain monitoring, utilising EEG recordings to monitor brain activity. After a role as a postdoctoral fellow at the Harvard Medical School/Massachusetts General Hospital in the US. Dr Nagaraj assumed the position of an assistant professor of medicine at the University Medical Centre Groningen in the Netherlands for two years.

At the same time, he invested three years working as a scientist at Royal Philips, where he specialised in sleep disorders, highlighting its potential to provide future insights into heart-brain connectivity.

Dr Nagaraj has a patent and 21 high-impact journal articles to his name, amassing over 650 pioneering research papers and has been recognised through several national and international grants.