BPH’s Baleen program commences with issue of rig tender
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BPH Energy Limited's (ASX:BPH) investee company Advent Energy Ltd has issued a Call for Tender for the provision of drilling rig services for the Baleen-1 exploration well.
The tender has been issued to multiple drilling contractors who have semi-submersible drilling units in the region.
Advent Energy is an unlisted oil and gas exploration company held by major shareholders BPH Energy (ASX:BPH), Grandbridge and MEC Resources (ASX: MMR)
This news coincides with the US traded crude oil price closing above US$70 for the first time since 2018.
West Texas Intermediate futures, the U.S. benchmark, settled up 1.2% to $70.05, the highest close since 16 October 2018.
Brent crude futures also traded strongly, finishing 1% higher at $72.22 per barrel.
As indicated below, the Baleen-1 well is planned to be drilled in 125 metres of water approximately 26 kilometres offshore and approximately 30 kilometres south-south-west of Newcastle.
The drilling of the well is subject to regulatory approvals and is expected to take around 40 days to reach total depth.
Subject to funding, the objective of the Baleen-1 well is to identify a gas target, as well as evaluating Carbon Capture Storage, subject to funding.
When the well has reached total depth and been fully evaluated, it will be plugged and abandoned in line with pre-drill planning as an exploration well.