BPH Energy Limited (BPH.AX) Annual Report to Shareholders
Perth, Australia, Nov 4, 2020 - (ABN Newswire) - There have been key developments this year in BPH Energy Limited (ASX:BPH) investees Advent Energy Ltd and Cortical Dynamics.
In January 2020 Advent submitted to the National Offshore Petroleum Titles Administrator (NOPTA) an application to enable the drilling of the Baleen drill target in the PEP11 permit offshore NSW. Advent, through its subsidiary Asset Energy Pty Ltd, holds an 85% interest in PEP11. Bounty Oil and Gas NL (Bounty) holds the remaining 15% in the Joint Venture.
PEP 11 covers 4,576 sq. km of the offshore Sydney Basin immediately adjacent to the largest gas market in Australia and is a high impact exploration project. PEP11 remains one of the most significant untested gas plays in Australia. Gas has now become a key input into Australia's future economic growth.
PEP 11 is a substantial offshore exploration area with large scale structuring and potentially multi-Trillion cubic feet (Tcf) gas charged Permo-Triassic reservoirs located less than 50km from the Sydney-Wollongong-Newcastle greater metropolitan area and gas pipeline network.
Heightening the prospectivity and critical positioning of PEP11, the Australian Energy Market Operator (AEMO) has warned that the developed gas reserves in eastern and south-eastern Australia can only meet forecast demand for a short period of time. The supply of gas into NSW has historically been from gas fields in the Bass Strait and Cooper Basin in South Australia. These gas reserves are declining.
The 2020 Gas Statement of Opportunities (GSOO) from AEMO forecasts demand and uses information from gas producers about reserves and forecast production to project the supply-demand balance and potential gaps for eastern and south-eastern Australian gas markets to 2039. There is continuing uncertainty about the longer-term gas supply outlook. AEMO has warned about potential supply shortages emerging on the east coast within five years, particularly in the southern states.
The gas supply crisis on the east coast of Australia has created a significant market opportunity to raise funding and drill with the objective of developing the PEP11 project.
In August 2020 the Australian Competition and Consumer Commission (ACCC) released an update report confirming that the gas prices offered over late 2019 to early 2020 were in the $8-11/GJ range.
Subject to validation of gas resource these circumstances create an excellent opportunity to develop the PEP11 project into the existing NSW gas pipeline network.
The PEP11 Joint Venture has reviewed the work program and now proposes to proceed with the drilling of a well at Baleen subject to approvals from NOPTA and other regulatory authorities and financing and has now made application to NOPTA to change the current permit conditions to proceed with the drilling.
The current permit expiry date is in March 2021. The application to NOPTA includes the extension of the permit title for up to two years to enable the drilling and includes an application for the removal of the requirement for a 500 sq. km 3D seismic program.
NOPTA has confirmed that the application is now in the final decision phase.
The drilling target at Baleen at a depth of 2150 metres subsea has been identified in a review of previous seismic data which suggest an extrapolated 6000 acre (24.3 km2) seismic amplitude anomaly area at that drilling target.
The Marlin report on this drilling target noted previous 2D seismic data showed that the Permian aged section of the Bowen Basin has producing conventional gas fields at a similar time and depth to PEP11 at the Triassic/ Permian age boundary. Advent completed a 200-line km 2D seismic survey in PEP11 as a precursor to drilling of this target.
The Company is also proposing with its Joint Venture partner Bounty, to use the drilling program at Baleen to investigate the potential for CCS - Carbon Capture and Storage (geo-sequestration of CO2 emissions) in PEP11. CCS can capture CO2 fossil fuel emissions. Both the International Energy agency and the Intergovernmental Panel on Climate change believe that CCS can play an important role in helping to meet global emission reduction targets. CCS is part of a suit of solutions with the potential to mitigate greenhouse gas emissions and help address climate change. The Sydney Basin is a major contributor to Australia's greenhouse gas emissions and contributes up to 34% of the total national emissions.
Independent Government published research has indicated at least 2 TCF(Trillion Cubic Ft) of CO2 storage may be feasible in the offshore Sydney Basin.
Significant further positive developments have occurred in Cortical Dynamics. BPH is the largest shareholder in Cortical. Cortical's industry disruptive brain function monitor competitive advantage has been recognised by leading world experts in anaesthesia. Cortical's technology has a versatility that goes beyond depth of anaesthesia.
There are considerable opportunities offered by subsequent expansion of the company's core technology through developing the product to carry out additional functions in other EEG based markets including neurodiagnostics of changes in brain and memory functions to provide early warning of degenerative diseases, pain response and tranquiliser monitoring for trauma patients in intensive care units, as well as drug discovery, drug evaluation and the brain computer Interface (BCI) market. The measurement of pain is a massive global market.
In the March 2020 quarter it was announced that the Company had secured an investment of $250,000 from IntuitiveX ("IX") and Korean based VC investor Gentium Partners. IX is a Seattle-based life science consulting firm and incubator Cortical has now begun the FDA 510K filing process for the brain anaesthesia response monitor (BARM) in the USA assisted by its strategic investor IX.
In a truly exciting development Cortical has now entered into a non-exclusive Licence and Co-operation Agreement with Philips Healthcare North America Corp (Philips), which will enable Cortical to interface its BARM into the Philips IntelliVue and Patient Information Center (PIC iX) Monitoring Systems using the IntelliBridge integration product line. The Phillips system is used in nearly 60 % of the world's operating theatres.
These important developments create a significant growth pathway in the coming year. Our strong share price rise in the last six months has reflected these excellent strategic initiatives.
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About BPH Energy Limited:
BPH Energy Limited (ASX:BPH) is an Australian Securities Exchange listed company developing biomedical research and technologies within Australian Universities and Hospital Institutes.
The company provides early stage funding, project management and commercialisation strategies for a direct collaboration, a spin out company or to secure a license.
BPH provides funding for commercial strategies for proof of concept, research and product development, whilst the institutional partner provides infrastructure and the core scientific expertise.
BPH currently partners with several academic institutions including The Harry Perkins Institute for Medical Research and Swinburne University of Technology (SUT).
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