BPH capital raising to support development of PEP11

By Trevor Hoey. Published at Feb 3, 2021, in Energy

BPH Energy Limited (ASX:BPH; BPHAO) has completed a share placement to sophisticated and professional investors that will provide the capacity to raise $9 million.

While the issue price of 13 cents represents a discount of about 20% to the 10-day volume-weighted average share price (VWAP), it should be noted that in the last week of December the company’s shares were trading as low as 3.4 cents.

The proceeds of the placement will be used by BPH primarily to invest in Advent Energy Limited.

BPH Energy Ltd’s investee company, Advent Energy Ltd through its wholly-owned subsidiary Asset Energy Pty Ltd (Asset), has signed a Preliminary Well Services Agreement with Add Energy for the drilling of the Baleen prospect, offshore New South Wales.

Advent Energy holds a strong portfolio of conventional and non-conventional near-term development and exploration assets spanning highly prospective acreage onshore and offshore Australia in proven petroleum basins.

The funds proposed to be invested by BPH will be used by Advent to progress well planning, engineering and environmental approvals for drilling at the Baleen drill target in the PEP11 offshore permit in NSW (see above).

It is planned that approximately $5.75 million of the capital raised will be used for this purpose.

Commenting on the capital raising, BPH managing director David Breeze said, “The company is pleased to receive funding from a range of investors including existing and new shareholders, and others who participated in the placement through Everblu Capital and 62 Capital”.

NOPTA close to decision regarding permit conditions for PEP11

BPH has previously advised it will underwrite and invest in Advent and will increase BPH’s shareholding from 22% to approximately 33% (subject to any required approvals or via an underwriting of an offer by BPH).

Advent has submitted to the National Offshore Petroleum Titles Administrator (NOPTA) an application to change the current PEP11 permit conditions in order for it to proceed with the drilling.

Advent, through its wholly-owned subsidiary Asset Energy Pty Ltd (Asset), holds an 85% interest and is operator of the PEP11 permit.

Bounty Oil and Gas NL (ASX: BUY) holds the remaining 15%.

The NOPTA application is in the final decision phase.

Management also expects to use $500,000 of the placement proceeds to increase its shareholding in Cortical Dynamics Limited (Cortical) from 16% to 18%, enabling further development of its Brain Anesthesia Response Monitor (BARM).


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