BPH Energy Ltd Raises $1.9 Million To Accelerate Funding Of Hydrocarbon And Cortical Investments

Perth, Australia (ABN Newswire) - BPH Energy Limited (ASX:BPH) and Bounty Oil & Gas NL (ASX:BUY) refer to the ASX announcement dated 21 July 2023 regarding PEP-11.

Asset Energy Pty Ltd (a wholly owned subsidiary of Advent Energy Limited, an investee of BPH Energy Limited) continues to progress the Joint Venture's applications for the variation and suspension of work program conditions and related extension of PEP-11.

Asset has provided additional information to NOPTA (National Offshore Petroleum Titles Administrator) in response to NOPTA's recent requests for further information.

While the applications for the variation and suspension of work program conditions and related extension of PEP-11 are being considered, Asset is continuing to investigate the availability of a mobile offshore drilling unit to drill the proposed Seablue-1 well on the Baleen prospect and is in communication with drilling contractors and other operators who have recently contracted rigs for work in the Australian offshore beginning in the first half of 2024. Further updates will be provided in the BPH Quarterly report to ASX.

PEP-11 continues in force and the Joint Venture is in compliance with the contractual terms of PEP11 with respect to such matters as reporting, payment of rents and the various provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth).

THE IMPORTANCE OF NEW GAS PROJECTS AND GAS SUPPLY

Asset and its Joint Venture partner Bounty Oil & Gas NL (ASX:BUY) have continued to monitor gas market demand. The analysis contained in the AEMO (Australian Energy Market Operator) report 'Gas Statement of Opportunities' (GSOO) has made a number of key findings.

- Despite increased production commitments from the gas industry since the 2022 GSOO, gas supply in southern Australia is declining faster than projected demand.

- As Australia transforms to meet a net zero emissions future, gas will continue to complement zero emissions and renewable forms of energy, and to provide a reliable and dispatchable form of electricity generation.

- The 2023 GSOO highlights continued risks of short-term gas supply shortfalls and long-term gas supply gaps arising from reducing production from southern Australia. In particular, the risk of peak day shortfalls continues to be forecast under very high demand conditions in the southern states from winter 2023.

- Short-term critical gas adequacy conditions include:

- Extreme weather conditions across southern regions that drive high coincident peak demand for gas consumption may lead to gas shortfalls, particularly if combined with high gas generation (if alternative electricity generation resources are unavailable).

- Peak day gas shortfall risks would increase if committed infrastructure developments to reduce transmission constraints were not delivered to schedule.

The GSOO report confirms:

- Production (from existing sources) is projected to decline significantly with much of the decline occurring in the Gippsland Basin (Victoria).

- New sources of gas supply will be needed.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/8X1L64UL

About BPH Energy Limited:

BPH Energy Limited (ASX:BPH) is an Australian Securities Exchange listed company developing biomedical research and technologies within Australian Universities and Hospital Institutes.

The company provides early stage funding, project management and commercialisation strategies for a direct collaboration, a spin out company or to secure a license.

BPH provides funding for commercial strategies for proof of concept, research and product development, whilst the institutional partner provides infrastructure and the core scientific expertise.

BPH currently partners with several academic institutions including The Harry Perkins Institute for Medical Research and Swinburne University of Technology (SUT).

Source:
BPH Energy Limited

Perth, Australia (ABN Newswire) - As advised to ASX on 24 May 2022 BPH Energy Ltd (ASX:BPH) announced that, subject to shareholder approval, it intended to pursue an investment in a hydrogen technology company, Clean Hydrogen Technologies Corporation (Clean Hydrogen or Vendor). Shareholder approval for this investment was obtained on 21 June 2022.

On 27 April 2023 BPH advised to ASX further funding agreements for US $500,000 as detailed below.

A further amount of US $250,000 has now been advanced to Clean Hydrogen Technologies to enable BPH and Advent to move to a 17.5% interest in Clean Hydrogen Technologies.

Term Sheet

The Company and its 36.1% (direct interest) investee company Advent Energy Limited (Advent, and together with the Company the Purchaser) entered into a binding term sheet (Term Sheet) with Clean Hydrogen Technologies Corporation (Clean Hydrogen) pursuant to which the Purchasers agreed to subscribe for fully paid shares in Clean Hydrogen (Subscription Shares), representing a total of 10% of the total issued share capital of Clean Hydrogen after the issue of the Subscription Shares (Subscription Shares Tranche 1), subsequent to which 8% of the Subscription Shares Tranche 1 were issued to BPH and the remaining 2% issued to Advent.

As advised to ASX on 21 April 2023, the Purchaser had a right of first refusal (ROFR) to subscribe for additional Subscription Shares representing an additional 10% (Subscription Shares Tranche 2) to the Purchaser and on the same terms and conditions as the Subscription Shares Tranche 1. On 16 April 2023 the Borrower delivered a written ROFR notice to the Purchasers granting them the right to acquire an additional 10%.

Clean Hydrogen has made requests for additional funding from the Purchaser. Advent lent Clean Carbon US$250,000 in March 2023 in accordance with an unsecured loan agreement and has made a further US$250,000 unsecured loan to Clean Carbon in accordance with a second loan agreement entered into in April 2023, both loans being made on normal commercial terms. The loans have been funded by monies loaned by the Company to Advent.

The April loan agreement provides for a further unsecured loan of US$500,000 to be made to the Borrower, being (i) US$250,000 on the request of the Borrower (ii) US$250,000 upon request by the Borrower, but not before 1 July 2023, and subject always to the Lender's absolute discretion.

At the request of the borrower a further US $250,000 has now been made to Clean Hydrogen Technologies. The loan is on normal commercial terms and has been funded by monies loaned by the Company to Advent.

Clean Hydrogen will allocate and issue up to 1,000 Options to Advent, with an exercise price of USD$3,000 each, and exercisable immediately, with the option for conversion into shares in Clean Hydrogen expiring ten years from the date of issue (Clean Hydrogen Options). An advance of every US$250,000 of the US$1,000,000 loan facility will equate to 250 Clean Hydrogen Options allocated to Advent or, from time to time, BPH.

The Purchaser and Clean Hydrogen have agreed to enter into a separate loan conversion agreement which will enable the conversion of the loan amount into the relevant Subscription Shares Tranche 2, representing the Purchaser's further 10% interest in Clean Hydrogen.

Background on Clean Hydrogen Technologies Corporation

Clean Hydrogen Technologies is a USA Delaware registered company with technology to produce clean hydrogen. They are currently building a system for commercial use, using their own unique catalysts and bespoke engineering processes, to generate clean hydrogen and solid carbon which has many uses including conductive carbon used to manufacture batteries.

The production of the two valuable products comes from processing natural gas with no CO2 emissions.

Their capabilities will help their customers accelerate their path to CO2 neutral, using an abundant natural resource, natural gas, with comprehensive existing infrastructure and supply chains in place. Their system has a modular based system design for supply to large scale solutions to meet upstream natural gas processing or downstream small scale needs to support hydrogen hubs for transport.

As part of their ongoing innovation and development they have filed 3 comprehensive patents in the USA and plan to continue to file further patents over the coming months. These patents reflect their capabilities at producing clean hydrogen and conductive carbon black with no CO2 emissions.

Clean Hydrogen Technologies are making the US market a key focus of their development plans.

In June 2023, the Biden-Harris administration released USA's first-ever National Clean Hydrogen Strategy and Roadmap to build a clean energy future and accelerate the American manufacturing boom.

Hydrogen demand in the United States is projected to reach up to 73 million metric tons by 2050 largely driven by its use as transportation fuel.

About BPH Energy Limited:

BPH Energy Limited (ASX:BPH) is an Australian Securities Exchange listed company developing biomedical research and technologies within Australian Universities and Hospital Institutes.

The company provides early stage funding, project management and commercialisation strategies for a direct collaboration, a spin out company or to secure a license.

BPH provides funding for commercial strategies for proof of concept, research and product development, whilst the institutional partner provides infrastructure and the core scientific expertise.

BPH currently partners with several academic institutions including The Harry Perkins Institute for Medical Research and Swinburne University of Technology (SUT).

Source:
BPH Energy Limited

Perth, Australia (ABN Newswire) - Asset Energy Pty Ltd, wholly owned subsidiary of Advent Energy Limited, an investee of BPH Energy Ltd (ASX:BPH) and Bounty Oil & Gas NL (ASX:BUY), report that on 14 July 2023; the Hon Chris Bowen, Minister for Climate Change and Energy, gazeted/designated an area of the Pacific Ocean area off the Hunter Region of NSW as suitable for offshore wind energy development and that it would be open for industry to develop wind farms. It will become Australia's second official offshore wind energy zone.

Having reviewed the PEP 11 seismic data and the drill data from the Seaclem 1 well (See map below); the Declared Wind Area does not materially impact the PEP 11 tle or the main PEP 11 target areas.

Asset Energy and Bounty welcome this declaration/gazetal as it reinforces our belief that decarbonising the global energy system will require the use of a mixture of technologies encompassing renewable energy resources, carbon sequestration and natural gas.

There are and will be offshore areas where wind, gas and carbon sequestration activities will overlap and it is Advents' belief that a holistic approach should and will be taken to ensure that clean energy is produced in a reliable and cost effective manner.

In April of this year Assets' parent company Advent Energy made a submission to the consulta on website of the Department of Climate Change, Energy, the Environment and Water on the proposed Hunter offshore wind development area.

https://consult.dcceew.gov.au/oei-hunter/have-your-say/view/1906

Advent has had preliminary discussions to explore synergies with one of the wind technology companies who are planning to tender for and develop part of the Declared area and has scheduled further consultation.

EXTENSION AND VARIATION APPLICATIONS FOR PEP-11 PERMIT TO ENABLE DRILLING OF SEABLUE GAS WELL AT BALEEN

Asset Energy con nues to progress the joint venture's applications for the varia on and suspension of work program conditions and related extension of PEP-11. This application follows from the fact that in February 2023 a decision by the previous Commonwealth-NSW Joint Authority to refuse the application was quashed by the Federal Court of Australia. Asset has provided additional updated information to the Commonwealth-NSW Joint Authority and title authority (NOPTA) in relation to its applications.

While the applications for the variation and suspension of work program conditions and related extension of PEP-11 are being considered by NOPTA, Asset is investigating the availability of a mobile offshore drilling unit to drill the proposed Seablue-1 well on the Baleen prospect which would take approximately thirty-five days to complete. Asset is in communication with drilling contractors and other operators who have recently contracted rigs for work in the Australian offshore beginning in the first half of 2024.

PEP-11 continues in force and the Joint Venture is in compliance with the contractual terms of PEP11 with respect to such maters as reporting, payment of rents and the various provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth).

THE IMPORTANCE OF NEW GAS PROJECTS AND EAST COAST AUSTRALIA GAS SUPPLY

The analysis contained in the Australian Competition & Consumer Commission Gas inquiry 2017-2030 interim report (January 2023) (ACCC Report ) emphasises that from 2026 there will be a material shortfall of supply in gas in the Australian east coast gas market.

"From 2026 onwards the east coast gas market is expected to experience a shortfall in supply from [proved and probable (2P)] reserves unless additional supply comes online. Under a Step Change scenario for gas demand [which models a steep decline in gas demand], the shortfall may be deferred until 2027. However, in the long-term there is not expected to be sufficient gas production from 2P reserves to meet demand, as demand is expected to decline over the longer-term through a shift to greater electrification and as energy policy shifts towards net-zero emissions targets. However, natural gas will likely be part of the transition between coal power generation and renewable energy sources, and there will be ongoing need for gas from commercial and industrial users in particular.

Without expansion in production, gas supply shortfalls are expected arising from export and domestic demand even under a Step Change scenario in which there are greater shifts to electrification, consistent with net-zero emissions targets. This would place continued upward pressure on prices in the gas market, as well as pressure on the electricity market through the role that gas powered generation will likely play in meeting peak electricity demand and maintaining the stability of the east coast energy system.

Additional gas supply will be needed to avoid future shortfalls.

The analysis of the ACCC is reflected by the recent representa ve public comments of senior Commonwealth Government Ministers.

(a) The Prime Minister the Hon Anthony Albanese MP said that "gas will play a role in renewables" when defending the role that gas will play in the transition to clean energy.

(b) The Hon Madeleine King MP correctly noted that:

"In the short term, medium term and long term we will need gas. You need gas to process critical minerals and rare earths which are essential for clean energy technology."

(c) The Hon Chris Bowen MP said that:

"Gas is a flexible fuel necessary for peaking and firming as we undertake this transformation [to the government's renewables target".

(d) The Hon Dr Jim Chalmers MP noted that the gas industry is a "really important" part of the nation's economy, and that the Commonwealth Government is working on increasing gas supply.

The views of the ACCC are reflected within industry. Dr Kerry Schot (the former head of the Energy Security Board) recently observed that the pathway to net zero emissions is not realistic without further gas supply. A similar observation has been atributed to Mr Adrian Dwyer (CEO of Infrastructure Partnerships Australia). The Australian Petroleum Production and Exploration Association has also observed the need for Australia to increase its domestic gas supply in light of the shortfall projections noted above.

Closely related to the need for Australia to have new gas supply is the fact that a lack of gas supply is a key driver of inflation. As Dr Phillip Lowe, the Governor of the Reserve Bank of Australia, said in a Senate Estimates Hearing:

"One way of tackling inflation induced by supply-side shocks is to address the supply side. At the moment there are two areas I think we could be focusing on. It's the supply of gas and electricity in the domestic market-what we can constructively do to increase the supply. I don't want to get drawn into what the right measures are, but just at the analytical level, increased supply of gas and electricity in the domestic market would be helpful to combat rising energy prices."

Asset Energy is the Operator of PEP-11 with an 85% interest, the remaining 15% interest is held by Bounty Oil & Gas NL (ASX:BUY).

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/B089AF3L

About BPH Energy Limited:

BPH Energy Limited (ASX:BPH) is an Australian Securities Exchange listed company developing biomedical research and technologies within Australian Universities and Hospital Institutes.

The company provides early stage funding, project management and commercialisation strategies for a direct collaboration, a spin out company or to secure a license.

BPH provides funding for commercial strategies for proof of concept, research and product development, whilst the institutional partner provides infrastructure and the core scientific expertise.

BPH currently partners with several academic institutions including The Harry Perkins Institute for Medical Research and Swinburne University of Technology (SUT).

Source:
BPH Energy Limited