Along with many on this forum I have suspected that a major oil co is accumulating BPT. I think this has a lot to do with BPT's strategic position in Cooper Basin, its dominance over smaller players there (eg, DLS, COE, ADE) & with market underappreciation of the scope of CB resources it holds...particularly "unconventional gas" AND high C02 gas discoveries that have yet to be tapped. "The Scenario" involves harnessing Cooper Basin gas to feed an LNG project - not a new concept maybe, but I am thinking that this might not necessarily be Gladstone-based. In fact, I'm tipping Adelaide...but even maybe Newcastle or Darwin. The pursuit of Epic Energy (ie, HDF) by US-based TCW has recently come to light, and could be a missing piece in the raving jigsaw. Epic/HDF control the Moomba to Adelaide pipeline AND the pipeline Moomba to QLD. Controlling this pipeline opens a myriad of opportunities for the savvy oil-major....Including directing QLD CSG to locations other than Gladstone OR utilising CB gas for QLD projects.
BPT becomes even more attractive to a major predator if they takeover DLS, ADE & COE. Maybe this explains the apparently irrational play with BPT... a delaying tactic?...particularly by Deutsch B,but now also others have appeared..eg, Dimension (also US-based, that maybe operating on behalf of a major predator(s). BPT's stated future focus could well be playing into the predators hands..... BPT have ann'ed a "Western Margin" drilling focus on PEL 91 (DLS 60%), PEL 92 (COE 25%) & 107 (DLS 40%). Oil Focus. They have initiated a "material" farmin to ADE's tenements. I reckon they would also have a close eye on PEL 104 & 111(where VPE operator with BG & Impress aboard)...some impressive oil discoveries in Growler....18m of net oil in one well....& apparently plenty of gas as well that could be utilised. The DLS takeover bid suggests as to what BPT's strategy is. PEL 106 holds 11 high Co2 gas/condensate rich discoveries yet to be commercialised....but feasibly this could be done if new-tech Co2-stripping technology is deployed. I'm tipping that BPT is intending to fund the "CoolEnergy" (well advanced FEED) plant to allow commercialisation of these & any gas from surrounding tenements. A takeover of DLS would give them 100% of PEL 106 & the right to use the Co2 stripping tech to exploit this block. Would also give them 100% of PEL91 & most of PEL 107. Interestingly Shell is a foundation investor in the "Cool Energy" project.
Currently the gas pipeline goes Moomba to Adelaide;& liquids to Port Bonython. BPT's plan may involve creating a gas-hub independent to current Moomba operations. This could require/justify additional pipeline capacity. An independent gas-hub AND gaspipe would strengthen BPT's position & give BPT a way to exploit their contingent gas resource and un-utilised conventional reserves. If pipeline capacity/control is achieved the option exists to site the "Cool Energy" plant either on the CB (current focus of plans) or alternatively they could also look at piping untreated gas (& maybe also condensate) direct to a destination port and strip the gas there prior to LNG processing/loading. This could be Adelaide, Port Bonython...or elsewhere. A Floating LNG capability may well be feasible under this scenario. Access to the LNG market AND greater independence from STO makes BPT a very different animal....a highly attractive one IMO from an oil-major's point of view. The move by ECW to buy Epic Energy's pipeline interests from HDF is highly interesting IMO. Control of Epic Energy AND BPT would allow all this scenario to be played out and bring the winning predator major upside potential... Hypothetically Raving S
HDF Price at posting:
$1.38 Sentiment: Buy Disclosure: Held
