Why the BPH Energy (ASX:BPH) share price is crashing 21% lower today

The BPH Energy Ltd (ASX:BPH) share price is crashing 21% lower on Thursday. Here's why investors are selling its shares…

| More on:
asx share price fall represented by investor with head in hands

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

The BPH Energy Ltd (ASX: BPH) share price has come under pressure on Thursday and is crashing notably lower.

In afternoon trade the biotechnology and mineral exploration company's shares are down a massive 21% to 11.5 cents.

This means the BPH Energy share price has now lost 66% of its value since peaking at 33.5 cents last month.

Why is the BPH Energy share price crashing lower?

Investors have been selling BPH Energy shares on Thursday following an update on its PEP 11 development.

PEP 11 covers 4,576 square kilometres of the offshore Sydney Basin immediately adjacent to the largest gas market in Australia. Management notes that it remains one of the most significant untested gas plays in the country.

BPH Energy has exposure to PEP 11 through its 33% ownership in Advent Energy.

What was the update?

On Wednesday New South Wales' Deputy Premier, John Barilaro, said he was not in favour of the oil project and the application should be rejected.

According to the Coast News, Mr Barilaro said he will "refuse further applications to extend the life of PEP 11."

He added that "PEP 11 was issued under a Commonwealth Act, the exploration area is in Commonwealth waters, and the ultimate decision-making power rests with the Commonwealth."

This is a big blow to Advent and BPH Energy, especially given that the latter has just raised $9 million to advance the project.

BPH Energy response

BPH has responded to the news.

It said: "The Joint Venture notes there have been reported press comments on 10th February 2021 attributed to the NSW Deputy Premier and Minister for Regional Industry and Trade, the Hon. John Barilaro MP. The Joint Venture has received no communication from the National Offshore Petroleum Titles Administrator (NOPTA) in respect of its current applications."

BPH and its Joint Venture Partners have sought clarification from NOPTA.

It added: "The Joint Venture Partners note that the Joint Venture has safely drilled on the PEP 11 permit previously to test for gas and it is confident it will safely do so again. The Joint Venture Partners have retained internationally recognised consultants to assist in this program. The Joint Venture Partners have just announced the appointment of a contracts manager for the Baleen well and are in the process of securing a rig and will release further details on this shortly."

Motley Fool contributor James Mickleboro 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 Fallers

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Down 79% in FY 2024, can the Sayona Mining share price rebound in FY 2025?

Sayona Mining shares got smashed in FY 2024 with investors now looking ahead to FY 2025.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why GR Engineering, Infratil, Paladin Energy, and WiseTech shares are falling today

These shares are ending the week in the red. But why?

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Hub24, Netwealth, Pantoro, and WA1 shares are falling today

These shares are missing out on the good times on Thursday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Incitec Pivot, Kogan, Insignia, and Resimac shares are dropping today

These shares are having a tough time on hump day. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Clinuvel, Mesoblast, Red Hill, and Resimac shares are sinking today

These shares are having a tough time on Tuesday. But why?

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Share Fallers

Why Bowen Coking Coal, Clinuvel, Meteoric Resources, and Pilbara Minerals shares are falling

These shares are starting the week in the red. But why?

Read more »

An unhappy investor holding his eyes while watching a falling ASX share price on a computer screen.
Materials Shares

Why did the Core Lithium share price crash 90% in FY 2024

Core Lithium shares were in a sharp downtrend throughout FY 2024. But why?

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Boss Energy, DroneShield, Jumbo, and Raiz shares are falling today

These shares are ending the week in the red. But why?

Read more »