Why has the BPH Energy (ASX:BPH) share price tanked 36% today?

The BPH Energy Ltd (ASX: BPH) share price has had another dramatic day today, falling 16% and placed in a trading halt. Here's the latest

| More on:

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 had a dramatic day today. BPH shares started the day at 16 cents a share. But the BPH share price plummeted 36.36% to just 10 cents a share in afternoon trading before being placed in a trading halt.

This latest move gives back most of the gains BPH investors have enjoyed since the company rocketed from 5 cents a share to as high as 33 cents in late January.

So what on earth is going on with this ASX energy company?

Well, unfortunately, we don't know too much yet, that's certain. But here's what we do know.

BPH share price in a trading halt

The BPH share price was having a fairly uneventful day, bobbing along at around 16 cents per share. Until midday, that was. BPH shares started dropping soon after noon, with the selling accelerating around 1pm. That's when the BPH share price hit 10 cents. At 2.02pm, BPH announced to the ASX that trading would be paused pending a further announcement.

At 2.48pm, the company released another announcement. This one told investors that BPH had requested an immediate halt to all trading of shares and options "pending an announcement to be made by the company to respond to an ASX price and volume query".

It went on to say the following:

The trading halt is necessary to assist the company in managing its continuous disclosure obligations as the company expects to make a material announcement to the market in relation to the stated purpose.

The company will continue to be suspended until 8 March, or when the company makes another statement. At the time of writing, that is all the information available.

What's been happening lately?

BPH Energy shareholders have had a rollercoaster of a ride over the past few months. This is the second trading suspension the company has faced in the past month alone.

It was only back on 17 February that shares were last suspended. Back then, it was due to several reports that implied BPH's proposal to use its PEP11 oil project in the Sydney basic to investigate the potential for a carbon, capture and storage project would be rejected by the New South Wales government.

In response, BPH released a statement that pointed out that the project would need to be blocked at the federal government level if it was to be derailed at all. And that's the last we've officially heard on this interesting saga to date.

It's possible that today's moves are the result of news of further development in this story (even though that doesn't appear to be public knowledge just yet). But, for now, we shall have to wait and see.

Motley Fool contributor Sebastian Bowen 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 Market News

A man face plants into the deep snow, indicating a company frozen in a trading halt.
Materials Shares

Why are Arafura shares frozen on Wednesday?

Arafura shares aren’t trading today. But why?

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Mineral Resources share price sinks to 52-week low: Is it a buy?

Do analysts think this beaten down mining stock is in the buy zone?

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 Argosy Minerals, Flight Centre, Mesoblast, and Telix shares are sinking today

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

Read more »

A woman is excited as she reads the latest rumour on her phone.
Share Gainers

Why Catalyst Metals, Ora Banda, Spartan Resources, and TechnologyOne shares are rising today

These shares are overcoming the market weakness and pushing higher. But why?

Read more »

Lab worker puts hands in the air and dances around
Healthcare Shares

Guess which ASX healthcare stock just rocketed 46% on major news!

Investors are sending this ASX healthcare stock flying higher on Wednesday. But why?

Read more »

A female stockbroker reviews share price performance in her office with the city shown in the background through her windows
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Woman on a tablet waiting in for her flight in an airport and looking through a window.
Travel Shares

Why did the Flight Centre share price just plunge 9%?

Investors are punishing the Flight Centre share price on Wednesday. But why?

Read more »

A man reacts with surprise when her see a bargain price on his phone.

2 ASX shares to watch while they're still dirt cheap

I’m bullish about these two stocks.

Read more »