Here's why the BPH Energy (ASX:BPH) share price is up 7% today

Shares in BPH Energy are rising this morning as investors react to the latest news about the company's offshore NSW gas prospect.

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The BPH Energy Ltd (ASX:BPH) share price is rising this morning after the company released more news of the Baleen gas prospect.

The BPH Energy share price is up 7.78% to 9.7 cents at the time of writing.

What did BPH Energy announce today?

BPH Energy advised that its investee company, Advent Energy Ltd, has appointed Xodus Group to prepare a submission for the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).

BPH Energy holds a 26% stake in Advent Energy. Advent Energy's major shareholders also include MEC Resources Limited (ASX: MMR) and the de-listed Grandbridge Limited.

Xodus will prepare an environmental plan for activities at the Baleen prospect to be presented to NOPSEMA.

Let's take a closer look at today's news.

Next step forward

Before the Baleen prospect can begin, it must receive the go-ahead from NOPSEMA.

NOPSEMA must assess a company's health, safety, and environmental plans before any offshore petroleum or greenhouse gas storage activities can begin.

Last week, the BPH Energy share price soared when the company announced there's a high likelihood of striking gas at the Baleen prospect.

The company also hopes to use the site for carbon capture and storage, which could see it receiving Federal Government incentives.

The Baleen prospect is found within offshore licence PEP-11 ­– located off the coast of Newcastle.

PEP-11 is to be developed as a joint venture between Advent Energy and Bounty Oil & Gas NL (ASX: BUY). Advent holds 85% of the licence, while 15% is held by Bounty.

Xodus has been appointed under a lump sum contract. The cost that Advent Energy will pay Xodus to prepare the environmental plan is yet to be disclosed.

BPH Energy share price snapshot

The BPH Energy share price is having a fantastic 2021 on the ASX.

Currently, it is up 142% year to date. It has also gained 870% since this time last year.

The company has a market capitalisation of around $59 million, with approximately 664 million shares outstanding.

Motley Fool contributor Brooke Cooper 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.

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