BPH Energy Ltd [ASX:BPH] shares dropped 18.42% at time of writing today. Driving down the BPH share price was the announcement that Advent Energy Ltd had applied to extend the offshore drilling permit for their Petroleum Exploration Permit PEP 11, located in the offshore Sydney basin.
BPH Energy is an ASX-listed investment company with an interest in oil and gas explorer Advent Energy Ltd. BPH holds a 22.7% stake in Advent Energy but recently went on to raise $9 million to increase their stake in Advent Energy to 33%.
Advent looking to get more time
PEP 11 is a joint venture between Advent, who holds an 85% interest in the project and Bounty Oil & Gas NL [ASX:BUY] who holds the remaining 15% of it. Advent has been preparing to drill with a target on the Baleen prospect.
BPH said today that Advent has applied for an extension of their PEP 11 permit to the National Offshore Petroleum Titles Administrator (NOPTA).
The application is for a 24-month suspension of the Permit Year 4 work program commitment and another 24-month extension of the permit term. The application was made through the COVID-19 Work Bid Exploration Permits announcement.
As the company explained:
‘In that release the Government recognised the that the COVID-19 pandemic was having a significant impact on the offshore petroleum sector and that additional flexibility would be required to assist titleholders to manage the COVID -19 crisis. The Joint Authority confirmed in that release that it regarded the COVID-19 pandemic as a force majeure event.’
In short, this would give the company some time to work on PEP 11.
What’s next for the BPH Energy Share Price?
We’ll need to wait and see if the application is approved but as you can already tell, investors weren’t too keen on the delay. BPH Energy shares dropped to 16 cents.
At the same time, Bounty Oil & Gas shares also dropped by 23% to 3 cents.
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