Here's what's driving the BPH Energy (ASX:BPH) share price today

The first step towards drilling in the Baleen Prospect is now underway.

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Shares in BPH Energy Ltd (ASX: BPH) are gaining today, following news the company is tendering for drilling services at the Baleen Prospect. At the time of writing, the BPH share price is $0.9 ­– 2.27% higher than yesterday's closing.

Located off the coast of Newcastle, the Baleen Prospect is a joint venture between BPH's investee company, Advent Energy Ltd, and Bounty Oil & Gas NL (ASX: BUY). The majority of the license to explore the Baleen Prospect is held by Advent at 85%, while 15% is held by Bounty. 

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

Baleen tender

According to today's announcement, the Baleen-1 well is to be drilled in 125 metres of water – taking around 40 days to reach its total depth.

A tender for the supply of drilling services has been sent to multiple companies with drilling equipment in the area.

The drilling is the first physical step of the prospect's exploration, and is being conducted with two objectives. First, for an expected gas target. Last month, a review of a Geoscience Australia research report found the companies have a high likelihood of striking gas at the Baleen Prospect.

The second objective is for carbon capture storage (CCS). If the well is found suitable for CCS it could offer the potential for carbon sequestration near the Sydney and Newcastle areas ­– where approximately one third of Australia's carbon emissions are created.

BPH recognises that CCS has the potential to address climate change by lessening the impacts of carbon emissions.

BPH share price snapshot

The BPH share price has been performing well on the ASX lately, with today's news bringing its latest boost.

Currently, the BPH share price is 109.3% higher than it was at the start of 2021. It has also gained 1,197.13% since this time last year.

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

The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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