STTCOMP BPH FA LONG
BPH holds an indicative 33% stake (up from 22%) in Advent EnergyLtd with strong prospects for a further increase to it’s % interest. Advent isan unlisted Australian company that owns 85% of the PEP11 title. PEP11 isdescribed as "potential multi-trillion cubic feet natural gas prospect".It is located off Newcastle NSW, highly strategic to both Sydney and the Hunterregion (where a gas fired power station is currently being proposed to replacethe aging Liddell coal fired plant). The project is also intending to implementCarbon Capture and Storage strategies which forms a key plank in meeting 2050Carbon Neutrality objectives.
Since January 2021, when @kellbys brought BPH to everyone’sattention, a number of key developments have occurred:-
· Signing of Well Services Agreement – Add Energy(ASX – 13/1/21)
· $9M Placement (ASX – 3/2/21)
· Appointment of Well Contracts Manager (ASX –10/2/21)
· NOPTA JA Member for NSW, John Barilaro, lodgeshis decision with NOPTA – 17/2/21
· Appointment of Environmental consultant – XodusGroup (ASX – 1/3/21)
· Federal Government Minister Angus Taylor announces$50M fund (CCUS) to assist in developing Carbon Capture and Storage projects.PEP11 is the only offshore Carbon sink in NSW and Government funding seemsassured subject to NOPTA approval – 1/3/21
The exploration potential component is well known and SPcurrently priced for NOPTA risk. The Carbon Capture and Storage potential is notwell recognised and NOT currentlypriced in. The CCS component has the potential to be more valuable than the Gasfind. This extract from an article from the MD published 17/2/21 in theNewcastle Herald details the process:-
Advent plans to drill a well about 2200 metres deep about "22 kilometresoff Munmorah". "It's called Baleen. The drilling target we're lookingat is about 6000 acres."Whether furtherwells would be drilled "depends whether it all drains into that onehole".
Mr Breeze said the well to be drilled would be deepenedto "determine the suitability of the rock for carbon capture andstorage".
"Rather than just drilling to the target depth of 2200 metres, you would drilldown to 3000 or 4000 metres because that's where the potential carbon storage areas are.Double the depth of the well is double the cost of the well."
It has now been 14 days since John Barilaro lodged hisdecision with NOPTA which paves the way for Keith Pitt to announce his bindingdecision. NOPTA announcement is now imminent and if approved, BPH SP willrapidly appreciate.
Post NOPTA announcements of Government funding of (a)exploration costs under “Gas Led Recovery - unlocking the 5 basins” – only threehave been named to date, and (b) “Carbon Capture Usage and Storage” fund, willfuel further re-rates.
