- Black Mountain Energy (BME) makes key progress at its prospective Valhalla gas project in WA’s Canning Basin
- With environmental approvals received, the company is advancing a 2D seismic survey which will support a well appraisal program in roughly two years time
- The Valhalla Project, the eight-largest undeveloped gas reservoir in the world, was confirmed suitable for integration with infrastructure in WA with gas to be transported on existing pipelines
- At the end of the quarter, BME had about $8.09 million in cash, leaving it well funded for September quarter activities which are mainly focused on the seismic survey
- Company shares are up 1.43 per cent to trade at 7.1 cents at 1:44 pm AEST
Black Mountain Energy (BME) reportedly achieved several key milestones for its Valhalla gas project during the June quarter — its second quarter since listing on the ASX.
The company was admitted to the official list of the ASX on December 23, 2021 after completed an IPO which raised $11 million.
To kick off the June quarter, received environmental approval for a 2D seismic survey at its Valhalla project in Western Australia’s Canning Basin. The approval followed flora, fauna and heritage surveys to ensure minimal disruption to the environment in which the project covers.
Based on independent estimates, the Valhalla is believed to contain a significant 1.8 trillion cubic feet (TcF) of prospective gas. According to BME, it’s the eighth-largest undeveloped gas reservoir in the world and the last non-developed basin in Australia.
In late April, the gas within the project was confirmed to be suitable for integration with existing infrastructure in WA following an analysis by the Australian Gas Infrastructure Group (AGIG).
AGIG’s gas blending study also assumed that gas transported from Valhalla would meet the same specification as the Dampier Bunbury Pipeline, so all gas from the Canning Basin region could be transported on existing pipelines.
Black Mountain said this was an “important milestone” to continue developing its Valhalla gas resource.
By the end of the quarter, Black Mountain Energy had teamed up with Highwire Energy Partners to explore environmental, social and governance (ESG)-positive commercial options for well-testing gas.
Highwire sent through a document stating its intention to buy up to five terajoules (TJ/day) of gas that would otherwise be flared at the Valhalla project, to power mobile cryptocurrency servers.
According to the June release, cryptocurrency mining is an ESG-positive alternative to flaring, as well as an opportunity to monetise what would have been a wasted by-product.
“The June quarter saw the company examine opportunities to generate early cashflow
ahead of any commercial production as we explored the sale of gas used in flaring, to Highwire who would use it to power their crypto mining equipment,” Executive Chairman Rhett Bennett said.
Since the quarter ended, BME has completed seismic clearing activities to pave the way for the seismic data program at Valhalla. The data will support the company’s planned 2024 appraisal well program.
In terms of expenditure, the company estimated in its IPO that it would spend around $11.3 million on activities, working capital and costs of the offer. However, Black Mountain’s actual expenditure came to around $3.1 million between ASX admission and June 30.
At the end of the quarter, BME had about $8.09 million in cash and an estimated 11.1 quarters left of available funding.
“During the September quarter, the company will continue with steps to develop the Valhalla project with seismic work the key focus point,” Mr Bennett concluded.
Company shares were up 1.43 per cent to trade at 7.1 cents at 1:44 pm AEST.