BPH Energy’s (ASX: BPH) investee Advent Energy plans to undertake deeper drilling than initially planned at the Baleen gas prospect to evaluate the potential for carbon storage in the Offshore Sydney Basin.
The decision follows a report Advent received from Add Energy, which related to preparations for drilling the Baleen well in offshore licence PEP-11.
Add Energy’s report included a review of existing data and latest geological prognoses for the proposed well.
The company was also charged with developing a suitable design, along with cost estimates and drilling schedule for the Baleen-1 exploration well.
Within the report is the design along with Add Energy’s rationale which includes recommendations to increase the well’s depth from the initially outlined 2,150m to 3,150m.
The increased depth is designed to target early Permian sandstones for both hydrocarbon and carbon sequestration (storage) potential.
As a result, pending approvals and funding, Advent plans to follow the recommendations.
Carbon storage significance
According to BPH, Advent’s carbon storage strategy is “significant” with media reporting that carbon prices will surge.
Underpinning this expected surge is a hike in carbon prices over the last four months in Europe, which has seen carbon rise from $35 a tonne in November last year to $62/t in March.
Driving the higher price is a global push to meet net zero emission goals.
BPH owns a 33% interest in Advent which, in turn, holds an 85% stake in PEP 11.
Advent’s goal is to unlock the gas potential within the 4,500sq km permit to feed Australia’s gas hungry east coast market.
However, as part of this, the company is committed to Australia’s net zero emissions by 2050 and plans to use carbon capture storage technology, which is already used at the Gorgon project in WA.
To underpin the carbon capture storage technology, field expert Prof Peter J Cook was appointed in December to advise the team on carbon storage at PEP-11.