Today BPH Energy Ltd (ASX: BPH) shares were placed in a trading halt after the company announced it is planning on undertaking a capital raising. At the close of market on Friday, the BPH share price was sitting at 17 cents.
The small-cap ASX share also released its quarterly activities and cash flow reports to the market today.
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Trading halt
Today BPH Energy shares were placed in a trading halt at the request of the company "for the purpose of considering, planning and executing a capital raising".
The company has requested its shares remain in the trading halt until either the announcement is made or before the commencement of normal trading on 3 February. BPH Energy further advised it expected the announcement will be made before Wednesday.
It's possible the funds will be used on the company's interests in the Sydney Basin mentioned below.
Operations report
During the quarter, Advent Energy, of which BPH is a substantial shareholder, submitted an application to the National Offshore Petroleum Titles Administrator (NOPTA). The application was a request to enable drilling of the Baleen drill target in the PEP11 permit offshore from Newcastle, New South Wales. The PEP11 joint venture has reviewed the work program and now expects to proceed with the drilling of a well as soon as the approvals from NOPTA and other authorities are received. This project still requires financing.
BPH energy is proposing with its partner, Bounty Oil & Gas NL (ASX: BUY), to use the drilling program at Baleen to investigate the potential for carbon, capture and storage (CCS) in the works. CCS is a process that can capture carbon dioxide fossil fuel emissions. Both the International Energy Agency and the Intergovernmental Panel on Climate Change believe that CCS can play an important role in helping to meet global emission reduction targets. To this end, during the quarter, BPH appointed earth scientist Peter Cook as an advisor for CCS.
On an interesting side note, Sydney Basin projects are major contributors to Australia's greenhouse gas emissions and currently contribute up to 34% of our total national emissions.
About the BPH Energy share price
Whilst BPH Energy shares remain in a trading halt, according to Commsec they are expected to open 5.88% higher to a price of 18 cents when trading resumes.
The BPH Energy share price was also rocketing higher last week, gaining 165% for the week by Friday's market close.
