BPH Energy’s (ASX: BPH) subsidiary Advent Energy has engaged Aztech Well Construction Services to provide drill project management services for its upcoming Seablue-1 exploration well.
The companies have executed a letter of intent with the well to be drilled in 125m of water about 26km offshore and 30km from Newcastle in New South Wales.
It is expected the well will take about 40 days to reach its total planned depth of 3,150m.
Drilling of the well has two objectives – discovering gas, and evaluating it for carbon capture storage potential.
Today’s news follows Advent issuing a call for tender earlier this year asking contractors to provide subsea wellhead equipment, materials and associated services.
Drilling is expected to begin as soon as approvals have been secured.
Seablue-1 will be drilled within PEP 11, which covers more than 4,500 square kilometres, and is targeting the Baleen prospect.
Advent owns 85% of PEP 11, with Bounty Oil and Gas (ASX: BUY) holding the other 15%.
The company hopes to uncover and sell gas into the east coast market where there is a shortage.
Carbon capture and storage
As well as unlocking gas potential at PEP 11, Advent is evaluating using carbon capture and storage technology at the project.
Carbon prices are expected to rocket as the world pushes towards net zero emissions.
This technology is already in use at Chevron’s Gorgon liquified natural gas project on Barrow Island in Western Australia’s north.
Advising Advent on carbon capture and storage potential at PEP 11 is Prof Peter J Cook who was appointed in December last year.
Prof Cook has published more than 30 papers on greenhouse gas technologies.
He was also a co-ordinating lead author for the Geneva-based Intergovernmental Panel on Climate Change.
It was 20 years ago, when Prof Cook drew attention to Australia’s potential role in carbon capture and storage.
BPH owns 33% of Advent.