BPH Energy’s (ASX: BPH) investee Advent has inked a preliminary well services agreement with a global specialist to look at engaging a rig for the Baleen prospect which is part of its PEP-11 gas permit in offshore New South Wales.
Under the well services agreement, Norway-headquartered Add Energy will review rig availability and engagement terms for the proposed Baleen exploration program.
Add Energy will also develop a scope of supply for regulatory and environmental compliance and review the proposed drilling schedule.
In readiness for the proposed drilling, Advent has submitted an application with the National Offshore Petroleum Titles Administrator, which is currently in the “final decision phase”.
As part of the agreement, Add Energy will review Advent’s proposed program for geosequestration (geological storage of carbon dioxide) drilling research at Baleen.
Late last year, Advent engaged Professor Peter Cook to advise on geosequestration for Baleen.
According to BPH, the offshore Sydney Basin offers potential for NSW to “make deep cuts” in its carbon dioxide emissions through carbon capture and storage (CCS).
BPH claims Prof Cook is an expert on CCS and has published more than 30 papers on greenhouse gas technologies.
He was also a lead author for the Geneva-based Intergovernmental Panel on Climate Change.
PEP-11 gas permit
BPH has a 23% stake in Advent, which, in turn, holds an 85% interest in PEP-11 and is the permit operator. Bounty Oil and Gas (ASX: BUY) retains the other 15% in the gas permit.
PEP-11 encompasses 4,576 square kilometres, with Baleen the primary target.
BPH claims parallels have been identified between PEP-11 and the gas producing structures in Queensland’s Bowen Basin.
A report last year revealed structural leads at PEP-11 that could contain 5 trillion cubic feet (TCF) of gas.
The Bass Strait fields, alone, have only produced 6 TCF since 1965.
As a result, BPH believes PEP-11 is one of the most significant untested gas fields in Australia – with the advantage of proximity the large east coast domestic market.