Fresh blow for PEP-11 JV as latest application to allow exploration knocked back

BPH Energy (ASX:BPH) and Bounty Oil and Gas (ASX:BUY) had bad news for the market on Monday attached to what can now fairly be called their tragic flagship asset: the PEP-11 oil and gas licence offshore NSW.

It’s a blow for what long-holding, true-believing investors in the stock are left. Especially for the ‘real’ main interested party behind PEP-11, which is BPH Energy.

Both companies jointly released the same statement which was sufficiently vague enough to sound boring to anybody not following the stock nor familiar with it – but it’s basically a death knell.

“[BPH and Bounty] as the PEP 11 Joint Venture announce that they have on 17 January 2025 been given notice by the National Offshore Petroleum Titles Administrator (NOPTA) that the Joint Authority has refused the Joint Venture Applications made on 23 January 2020 and 17 March 2021,” BPH wrote.

“The PEP 11 permit will continue in force for a period of 2 months from 17 January 2025.”

In case it isn’t obvious, the “JV Application” is not an application for a JV, but actually, the ultimate permit allowing BPH and Bounty to move ahead with exploration activities at PEP-11 – an oil and gas block Geoscience Australia has previously stated doesn’t actually contain any hydrocarbons.

The news also follows a statement from the Minister for Industry and Science Ed Husic released late last week, right before the weekend.

“On 16 January 2025, the Commonwealth-New South Wales Offshore Petroleum Joint Authority (Joint Authority) made the decision to refuse both the PEP-11 applications,” Husic wrote.

“As part of the decision-making process, Asset Energy Pty Ltd was given an opportunity to respond to the concerns that I raised in forming my preliminary view that the Joint Authority should refuse the applications. Asset Energy’s response was considered before reaching this decision.”

Asset Energy, for those playing at home, is a vehicle of BPH Energy.

Beyond this, BPH has a biotech arm it could fall back on – and not much else.

Perhaps the company could later this year tap upside brought about by Trump co-runner Robert F Kennedy, who is set to head the US health system, though has been suspiciously absent from media coverage lately.

(The fact the company long changed its name to BPH Energy underscores what management has been banking on, rather than its biotech arm.)

That was abundantly clear in BPH’s Monday announcement. It included one final paragraph Bounty did not.

With two months left on the permit, BPH is ordering yet another review. Don’t expect a quiet retreat: BPH once effectively sued Scott Morrison.

BPH last traded at 1cps; BUY at 0.3cps.

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