BPH Energy’s (ASX: BPH) investee Patagonia Genetics has entered a joint venture with Impact NRS subsidiary Bio-Sciences Pharma to evaluate and co-commercialise medicinal cannabis cultivars, while its other investee Advent Energy has submitted a drilling application.
According to Patagonia, Bio-Sciences Pharma is at the “forefront” of medicinal cannabis research in Israel.
Under the joint venture, Patagonia will supply 94 cultivars to Bio-Sciences Pharma, which will undertake an 18-month study and secure phytosanitary certificates to enable imports into Israel.
The study will focus on how each of the 100 active cannabis compounds interact within the cannabis plant.
Individual compounds and their effects will be characterised, then gene expression in plants can be modified.
This can produce desired cannabinoids, while negating any negative side effects.
As part of the research, Bio-Sciences Pharma will propagate genetic samples under its cultivation licence.
The company will establish a certificate of analysis for each cultivar – quantifying its cannabinoid and terpene profiles including THC and CBD.
Once the study has been completed, Patagonia and Bio-Sciences Pharma will review the results and look at co-commercialising cultivars of interest.
Patagonia’s in-country manager Miguel Serrano said the joint venture with Bio-Sciences Pharma was a “landmark deal”.
“We will finally be able to explore the potential of our unique genetic collection.”
“With up to 94 cultivars to be propagated and lab tested, this deal saves Patagonia several years in research and development and significant capital expenditure.”
“Patagonia considers Israel is the leading authority on medicinal cannabis research and is excited to collaborate with Bio-Sciences Pharma in delivering a designer cannabis product,” he added.
To back its upcoming cultivar research, Bio-Sciences Pharma owns more than 1,000 square metres of growing facilities and 200sq m of laboratories supporting metabolomics and tissue culture research.
Meanwhile, BPH owns 10% of Patagonia and has the option to boost this to 49%.
Based in Chile, Patagonia possesses more than 300 unique cannabis and hemp strains, which it plans to generate a range of medicinal cannabis products to sell in South America and international markets.
In the oil and gas space, BPH’s 22%-owned Advent Energy has an 85% stake in the PEP11 project located in the offshore Sydney Basin.
The investee revealed today it had submitted an application with the National Offshore Petroleum Titles Administrator to drill the Baleen target within PEP11.
Bounty Oil and Gas NL (ASX: BUY) owns the remaining 15% of PEP11, which hosts “significant” structural targets which are believed to hold natural gas resources.
The project covers 4,576sq km in the basin and is adjacent to Australia’s largest gas market, which is facing a supply crisis.
BPH’s share price was steady at $0.001 in early afternoon trade.