Here's what's driving the BPH Energy (ASX:BPH) share price today

The first step towards drilling in the Baleen Prospect is now underway.

| More on:
off shore drilling operation at sunset

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 gaining today, following news the company is tendering for drilling services at the Baleen Prospect. At the time of writing, the BPH share price is $0.9 ­– 2.27% higher than yesterday's closing.

Located off the coast of Newcastle, the Baleen Prospect is a joint venture between BPH's investee company, Advent Energy Ltd, and Bounty Oil & Gas NL (ASX: BUY). The majority of the license to explore the Baleen Prospect is held by Advent at 85%, while 15% is held by Bounty. 

Let's take a closer look at today's news from BPH.

Baleen tender

According to today's announcement, the Baleen-1 well is to be drilled in 125 metres of water – taking around 40 days to reach its total depth.

A tender for the supply of drilling services has been sent to multiple companies with drilling equipment in the area.

The drilling is the first physical step of the prospect's exploration, and is being conducted with two objectives. First, for an expected gas target. Last month, a review of a Geoscience Australia research report found the companies have a high likelihood of striking gas at the Baleen Prospect.

The second objective is for carbon capture storage (CCS). If the well is found suitable for CCS it could offer the potential for carbon sequestration near the Sydney and Newcastle areas ­– where approximately one third of Australia's carbon emissions are created.

BPH recognises that CCS has the potential to address climate change by lessening the impacts of carbon emissions.

BPH share price snapshot

The BPH share price has been performing well on the ASX lately, with today's news bringing its latest boost.

Currently, the BPH share price is 109.3% higher than it was at the start of 2021. It has also gained 1,197.13% since this time last year.

The company has a market capitalisation of around $59 million, with approximately 664 million shares outstanding.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Energy Shares

An oil worker in front of a pumpjack using a tablet.
Energy Shares

Top 5 ASX 200 energy shares of FY25 amid a challenging year for sector

The energy sector was the weakest of the 11 market sectors in FY25.

Read more »

An oil worker on a tablet with an oil rig in the background.
Energy Shares

Buying Woodside shares? Here's the latest oil price forecast from Goldman Sachs

Here’s what Goldman Sachs is forecasting for the oil price in the year ahead.

Read more »

Natural gas plant engineer using a laptop.
Energy Shares

Santos share price pushes higher amid big Asian news

ASX investors are bidding up Santos shares on Friday.

Read more »

a man and his small son crouch in a green field under a beautiful sunset sky looking at renewable, wind generators for energy production.
Energy Shares

Non-oil energy investments are on the rise: Here are 2 to consider

Australian investors are turning their attention to non-oil energy stocks poised for growth.

Read more »

Oil rig worker standing with a clipboard.
Energy Shares

How much upside does Macquarie tip for Woodside shares?

With shares up 23% since April, here’s Macquarie’s 12-month forecast for the Woodside share price.

Read more »

A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant.
Energy Shares

Should I buy Santos shares today amid the ongoing $30 billion takeover offer?

With the $30 billion Santos takeover offer not yet finalised, should you buy shares right now?

Read more »

Workers inspecting a gas pipeline.
Broker Notes

What's Macquarie's price target for Origin Energy shares?

Could Origin be primed for a turnaround?

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

With an 8% dividend yield, should I buy Woodside shares for their passive income?

A leading expert offers his take on Woodside shares and the passive income on offer.

Read more »