BPH Energy’s (ASX: BPH) investee Advent Energy has confirmed geophysical indications of gas at its PEP 11 in the offshore Sydney Basin after a review of a Geoscience Australia reports.
Advent has undertaken further reviews of Geoscience Australia’s reports, which BPH says confirm natural gas features in the offshore Sydney Basin and identified a series of “large pockmarks”.
One of the reports noted that the distinct circular depressions identified on the sea floor were “likely to be caused by methane gas and fluid from the Permian coal measures escaping along the fault plane”.
Additionally, depressions on the sea floor on the mid-slope between the Newcastle Canyons were also considered likely to be “formed from gas and/or fluid escape”.
According to BPH, a review of wells that were drilled following surface geochemical surveys found 79% of the wells drilled into positive geochemical anomalies resulted in commercial hydrocarbon discoveries.
“In contrast, 87% of wells drilled in the absence of an associated geochemical anomaly resulted in dry holes.”
PEP 11 closest potential new gas source for NSW market
With PEP 11 looking even more optimistic following the reviews, Advent has pointed out PEP 11 could be the “closest potential new source of gas to the NSW market”.
Advent and its PEP 11 joint venture partner Bounty Oil and Gas (ASX: BUY) have confirmed all gas sourced from PEP 11 will flow into Australia’s east coast market.
The Australian Competition and Consumer Commission released a report earlier this year stating there remained risks of there being a gas supply shortfall within Australia.
With PEP 11, Advent is hoping to meet any supply gaps.
Additionally, BPH pointed out the Australian Government has designated affordable and reliable gas as “crucial” to the country’s economic recovery from COVID-19.
The company also hopes to take advantage of government funding incentives for the carbon capture and storage technology that was highlighted in last week’s budget.