Here's why the BPH Energy (ASX:BPH) share price is up 22% today

The BPH Energy Ltd (ASX: BPH) share price is soaring with news of its subsidiary's Offshore Sydney Basin gas prospect.

| More on:
A mining worker wearing a hard hat, orange high vis vest and blue long-sleeved shirt raises his fists in celebration with an excited expression on his face

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in BPH Energy Ltd (ASX: BPH) are soaring with news of its subsidiary's Offshore Sydney Basin gas prospect. At the time of writing, the BPH share price has gained 21.9% as shares in the company trade for 8.9 cents.

BPH's investee company, Advent Energy Ltd, has reviewed a Geoscience Australia research report that uncovered geophysical gas indications in the basin.

The company, which has several interests including gas and oil exploration, said the basin was the closest potential new gas source to the New South Wales gas market.

BPH also advised on the potential for Advent's Baleen Well to be used for carbon capture and storage (CCS). Let's take a closer look at the news announced by BPH today.

Offshore Sydney Basin's potential 

According to BPH, the Australian government agency Geoscience Australia has found a high likelihood of striking gas in Advent Energy's Offshore Sydney Basin.

Geoscience claimed the likely presence of gas was evident from a series of pockmarks.

Advent is part of a joint venture in the promising part of the Offshore Sydney Basin, offshore license PEP-11, located off the coast of Newcastle.

The PEP-11 joint venture is between Advent and Bounty Oil & Gas NL (ASX: BUY), with 85% of the license held by Advent and 15% is held by Bounty. 

According to BPH's release, the development of Australia's energy resources is critical for Newcastle's industries, job creation, and power generation.

Further, Advent and Bounty believe a gas discovery in PEP-11 would be in line with the Federal Government's ambition to find gas supplies to help the region transition to electric power.

Carbon capture and storage

BPH also updated the market on an additional objective of Advent and Bounty's drilling in the Baleen Well, an area in the PEP-11 licence.

According to the company, the Federal Budget includes incentives for CCS technology.

BPH has previously announced the Baleen Well program could offer CCS for the greater Sydney and Newcastle area.

If successfully implemented, the Baleen Well would be the closest point of CCS to the area, producing approximately one-third of Australia's carbon emissions.

BPH Energy share price snapshot

The BPH Energy share price is having a ripper year on the ASX so far, with today's news bringing its latest boost.

Currently, BPH shares have gained 120% since the start of 2021. They've also gained 790% over the last 12 months.

The company has a market capitalisation of around $49.5 million, with approximately 664 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors enjoyed a strong recovery day this Tuesday.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

CBA shares hit another all-time high. Can they surpass $200 in 2025?

CBA shares have a tailwind pushing up their price that has nothing directly to do with the bank's business performance.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Alliance Aviation, Cogstate, Collins Foods, and Findi shares are roaring higher today

These shares are having a good session on Tuesday. Let's find out why.

Read more »

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week this Monday.

Read more »

Crude oil barrels rocketing.
ETFs

Why did the BetaShares Crude Oil ETF just spike 4%?

This ETF is attracting buyers in today's seller's market.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why BWP, Metcash, Resolute Mining, and SHAPE shares are pushing higher today

These shares are starting the week on a positive note. But why?

Read more »

Workers at the port joyfully jump high in the air with shipping containers in the background.
Industrials Shares

$10,000 invested in Austal shares a year ago is now worth…

Austal is an Australian shipbuilding company founded in 1988 that builds ships for the US Navy.

Read more »

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to a disappointing week for investors this Friday.

Read more »