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Global Oil & Gas Limited (“Global” or “the Company”) is pleased to update shareholders on the work programme continuing over its 100% owned Exploration Permit 127 in the Northern Territory, along with a Company update on complimentary energy opportunities.
New Project Opportunities
Consistent with its ongoing strategy of continually reviewing new opportunities across the hydrogen, helium and conventional oil and gas sector, the Company has been undertaking advanced due diligence on several complimentary projects.
The Company believes diversifying into the clean technology sector is an economic, social and environmental obligation for all conventional oil and gas companies, which over recent years has brought world-class research and innovation into the sector. Like many up and coming industries, first mover advantage is always critical.
The Company will update shareholders once due diligence is complete and negotiations progress to an advanced stage.
EP127 Work Programme
In November 2021 GLV undertook a Helium and Hydrogen soil sampling survey across the license. A remote spectroscopy study was completed in June 2021, this data was reviewed and has been used to plan the next phase of field activities which include:
- Increase of the field gas sampling density, and refinement of the sampling methodology
- Investigation of water bore gasses
- Further desktop studies, including:
- Seismic interpretation (refer to Figure 1)
- Geological appraisal to refine play concept
- Definition of energy needs in the area, including mining and community
- Definition of cultural areas of significance in the area
- Consulting relevant stakeholders in the field area
The above planned activities will be used to define a clear area for further exploration activities.
Soil Gas Sampling
The aim of further soil gas sampling would be to prove the migration pathway from the relatively shallow basement via faults. Data collected in the previous campaign has been used to plan sampling grids. The grid will likely consist of a sample points every over an area near the MacIntyre-1 and -2 well head locations. A courser grid would be used around the well locations.
Figure 1-Current EP 127 permit with seismic and wells overlayed
Sampling Water Wells
The Company is currently assessing an additional method of non-invasive helium exploration by testing the regional water wells for helium concentration. This option requires further investigation to determine whether the option is viable option on existing wells or whether drilling new water wells would be required.
Drilling water wells has been proved as successful by Blue Star Helium (ASX:BNL) in Colorado. See BNL’s announcement on the 20th of October 2021.
Click here for the full ASX Release
This article includes content from Global Oil and Gas Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Global Oil & Gas
Overview
Global Oil & Gas (ASX:GLV) is an Australia-based oil and gas exploration company focused on developing its recently acquired Tea LXXXVI oil and gas block in Peru, located in the Tumbes-Progreso basin and near the prolific Talara basin. The project’s hydrocarbon exploration potential leverages Peru’s long history as an oil and gas producer, which dates back to the late 19th century when the country drilled its first well more than 150 years ago.
Oil and gas production in Peru is led by the Peruvian National Agency of Hydrocarbons (Perupetro). The country is resource-rich, with over 421 million barrels (MMbbl) of proven and probable reserves located in the 18 sedimentary basins.
Hydrocarbon fields, both on and offshore, in the Tumbes-Progreso and Talara basins currently contribute over 1.4 billion barrels of domestic oil production and 1.7 trillion cubic feet (TCF) of natural gas production. The Talara basin itself has cumulatively produced more than 1.6 billion barrels of oil and is surrounded by multiple historic and currently producing oil and gas fields.
GLV’s Tea LXXXVI project is the result of a technical evaluation agreement (TEA) with the Peruvian National Agency of Hydrocarbons (Perupetro), which provides GLV and its partner, US-based oil and gas exploration company Jaguar Exploration, the exclusive right for greenfield exploration activities over the TEA area. GLV holds an 80-percent interest in the asset with the remaining 20 percent held by Jaguar.
The project comprises a 4,858-square-kilometer oil and gas block in proven offshore hydrocarbon-bearing basins in Peru, including the prolific Talara basin. Offshore, Peru remains dramatically underexplored and has immense potential for hydrocarbon plays.
The TEA LXXXVI project entitles GLV to a two-year assessment of the block with the option to extend it for one extra year. This requires no minimum spending commitments from GLV. As such, GLV can focus on high-impact, low-cost exploration activities for the next 12 to 18 months, which includes desktop studies, and reprocessing of old 3D seismic data, among other activities. This is beneficial for GLV as it provides the company with an inexpensive and exclusive two-year option to convert all or part of the TEA LXXXVI area into a licence contract. In addition, news flow from low-cost exploration activities should keep investors excited about the company’s future.
Considering the block's potential, GLV has appointed a world-class technical team with more than 200 years of collective experience to develop the TEA LXXXVI asset. Several of the newly appointed team members have previously worked on the area covered by GLV, which should help in fast-tracking the development of the block. The team comprises proven oil finders with collective discoveries of more than 480 million barrels of oil equivalent of 2P reserves and more than 400 million barrels of oil equivalent in contingent resources in Peru and Colombia.
The experience of working in the TEA LXXXVI property and surrounding fields will be vital for GLV to expedite the understanding and evaluation of the asset.
Company Highlights
- Global Oil & Gas Ltd. is an Australia-based oil & gas exploration company focused on developing its recently acquired oil and gas block in Peru, TEA LXXXVI
- The TEA LXXXVI project comprises a 4,858 square-kilometer oil & gas block in proven hydrocarbon-bearing basins offshore including the prolific Talara basin (1.6 billion barrels produced, so far). GLV holds an 80 percent interest in the asset with the remaining 20 percent held by US-based oil & gas exploration company, Jaguar Exploration.
- The block is in proximity to multiple historic and current producing oil & gas fields. This includes the Corvina oil field, producing 4,000 barrels of oil per day, and the Alto-Pena Negra oil field which is currently producing around 3,000 barrels of oil per day, along with a total historical production of more than 143 million barrels of oil. This increases confidence regarding the hydrocarbon exploration potential of TEA LXXXVI.
- The company is undertaking a detailed work program on the project, including 3D seismic data processing, and geological and geophysical studies. This should help GLV generate certified prospective resources along with three to four drill-ready targets over the next 12-18 months.
- A world-class technical team with more than 200 years of collective experience was appointed by GLV to develop and advance the TEA LXXXVI offshore block.
- The company's other projects include the Georgina Basin project (EP-127) and the Sasanof Prospect (WA-519-P).
- EP-127 is located in the Southern Georgina Basin in the Northern Territory. The Basin covers more than 100,000 square kilometers in the Northern Territory and the western part of Queensland. This basin is one of the most prospective onshore basins in Australia with potential for both very large conventional and unconventional oil and gas deposits.
- The Sasanof Prospect is located in permit WA-519-P, where GLV holds a 25 percent interest. The Sasanof Prospect covers an area of up to 400 square kilometers and is estimated to contain a 2C prospective resource of 7.2 trillion cubic feet of gas and 176 million barrels of condensate.
Key Project
TEA LXXXVI Project
This oil and gas block is located on the northwest coast of Peru in the Tumbes-Progreso basin, in water depths that range from 100 meters to 1,500 meters. The project spans 4,858 square kilometers and is surrounded by historical and current producing oil and gas fields. The block includes the Corvina oil field which generated past production rates of up to 4,000 barrels of light oil per day. In the south is the Talara basin, which is one of the most productive basins in Peru having produced more than 1.6 billion barrels of oil. To the southeast is the Alto-Pena Negra oil field, one of Peru’s most productive fields, currently producing around 3,000 barrels of oil per day and with a total historical production of more than 143 million barrels of oil.
The project benefits from the presence of excellent infrastructure, including a refinery that is only 70 kilometers away. The block has seen exploration in the past, specifically in the early 1970s, when three exploration wells were drilled, all showing the presence of oil. In addition, historical data from 2D seismic surveys and more than 3,800 square kilometers of 3D seismic surveys are available for processing. The rarity of finding a large, undrilled area in a proven hydrocarbon basin system with completed 3D surveys is noteworthy.
The historical discoveries were mostly located in shallow waters and could prove to be an easy target for GLV. In addition, there is a high likelihood of further discoveries in deeper waters (400 meters to 800 meters). Utilizing historical seismic data, GLV along with its partner Jaguar have identified prospects and leads in the block that can be classified as prospective resources. Of particular interest are two main prospects – Bonito and Tiburon.
The company has planned extensive work over the next 12 to 24 months. The first 12 months will focus on reprocessing 1,000 square kilometers of 3D seismic data and carrying out amplitude versus offset (AVO) studies. The following 12 months will then focus on geological and geophysical studies including 3D seismic interpretation and structural analysis. By the end of two years, GLV aims to generate certified prospective resources along with three to four drill-ready targets. In addition, GLV is looking for a farming partner to cover the cost of drilling. The block has a billion-barrel potential according to Perupetro.
TEA’s 2-Year Work Commitment
Management Team
Matt Ireland - Non-executive Chairman
Matt Ireland, a partner at Steinepreis Paganin, is a highly experienced corporate and commercial lawyer with extensive experience in corporate governance and compliance matters as well as in mining and oil & gas transactions including joint venture agreements, M&A transactions, capital raisings and asset acquisitions/disposals. Ireland graduated from Murdoch University with a Bachelor of Laws and a Bachelor of Commerce in 2002 and was admitted to the Supreme Court of New South Wales in 2003 and the Supreme Court of Western Australia in 2004.
Scott Macmillan - Non-executive Director
Scott Macmillan is the managing director and founder of Invictus Energy Limited (ASX:IVZ) which, since listing on the ASX in 2018, has seen Invictus grow substantially in value from a microcap frontier explorer to an emerging oil and gas developer. Invictus Energy is an oil and gas company opening one of the last untested large fronter rift basins in onshore Africa. Macmillan is a reservoir engineer with more than 15 years of experience in oil and gas exploration, field development planning, reserves and resources assessment, reservoir simulation, commercial valuations and business development. Before founding Invictus, Macmillan worked as a senior reservoir engineer at Woodside Energy and AWE, during which time he participated in large offshore oil and gas field operations and the development of the Waitsia Gas Field.
Troy Hayden – Non-executive Director
Troy Hayden has more than 25 years of experience in the upstream oil and gas industry. He has worked on numerous oil and gas asset acquisitions, divestments, and M&A transactions. He is currently the business development manager at Transborder Energy, a small-scale Floating LNG company. He was the CEO at ASX-listed Tap Oil for six years and worked at Woodside Petroleum for 12 years, where he held a number of senior leadership positions. He has consulted with several resource companies, working with First Quantum Minerals (acting CFO), QR National (group treasurer) and Western Gas.
Anna Mackintosh – Company Secretary
Anna Mackintosh has over 26 years of commercial experience, including 11 years with BHP and 10 years with AFSL holder Kirke Securities as compliance manager, finance manager and responsible executive. In addition to GLV, she also serves as company secretary of TAO Commodities (ASX:TAO), Marquee Resources (ASX:MQR), and XS Resources.
Source Rock Royalties
Overview
Source Rock Royalties (TSXV:SRR) is a Calgary, Canada based company exclusively focused on oil & gas royalties in the provinces of Alberta and Saskatchewan. Source Rock's portfolio primarily consists of royalty interests focused on oil, with concentrations in southeast Saskatchewan, central Alberta and west-central Saskatchewan. The portfolio comprises:
- Various gross overriding royalty interests in southeast Saskatchewan.
- A gross overriding royalty in largely contiguous Clearwater interests in Central Alberta.
- A production volume royalty in Viking mineral rights in east-central Alberta.
- Various gross overriding royalties in central Alberta.
- Various gross overriding royalties in the west-central Saskatchewan Viking light oil play.
Source Rock Royalties offers investors low-risk and low-capital-cost exposure to the oil & gas sector in western Canada. The royalty business model offers the benefit of sharing in production revenue without exposure to the capital costs associated with drilling, development, maintenance, abandonment, environmental and other obligations.
Since its inception, Source Rock Royalties has consistently pursued royalty acquisitions, even amidst significant energy market fluctuations. The company has primarily concentrated on non-marketed royalty acquisitions rather than opportunities marketed through formal third-party processes. Leveraging strong relationships within the oil and gas sector in the Western Canadian Sedimentary Basin, Source Rock identifies and accesses niche royalty acquisitions.
Source Rock acquired new royalties worth nearly C$13 million in 2023 and a total of C$16.5 million since its IPO in March 2022. These acquisitions effectively doubled Source Rock’s royalty acreage, significantly enhancing both its current royalty production and its exposure to potential undeveloped drill locations. Source Rock generated C$6.6 million in royalty revenue in 2023, the highest in its 11-year history.
Source Rock endeavors to keep costs low, thereby maximizing cash flows. Aside from the CEO and CFO, additional technical oil and gas professionals are engaged by Source Rock as consultants on an as-needed basis. Currently, Source Rock Royalties employs only one full-time staff member. The low-cost base ensures consistent cash flows as evidenced by its more than 11-year track record of delivering positive funds from operations.
Strong cash flow allows the company to consistently pay and increase dividends. Source Rock has paid ~$17 million in dividends to shareholders since 2014. Source Rock increased its dividend twice in 2023, for a total increase of 20 percent.
The current monthly dividend is $0.006 and is sustainable given that it can comfortably be funded by current operations even at a lower oil price scenario of C$60/bbl (or US$50/bbl WTI).
The management and board of directors have a proven track record of creating value in the oil & gas industry. The insiders own 9.5 percent of Source Rock’s common shares, aligning their interest to that of the shareholders by directly participating in the same financings as outside shareholders since inception. The company has a strong institutional shareholder base with CN Rail Pension Fund owning approximately 21 percent of Source Rock’s common shares. Source Rock Royalties has a clean capital structure with only ~45 million common shares issued and outstanding.
Source Rock focuses on a balanced growth and yield model, limiting volatility in returns for shareholders. Source Rock offers investors a unique opportunity to gain exposure to the oil & gas sector.
Company Highlights
- Source Rock Royalties is a Calgary, Canada based pure-play oil and gas royalty company, with a focus on Alberta and Saskatchewan; the only junior oil and gas royalty company listed on the TSXV.
- Source Rock concentrates on acquiring royalties in areas with proved reserves, foreseeable future high rate-of-return drilling upside, and partnering with operators that are financially and operationally prudent.
- Owning and managing royalties is a capital-light business model offering the benefit of sharing in production revenue without exposure to the capital costs associated with drilling, development, maintenance, abandonment, environmental and other obligations.
- Source Rock Royalties has a diversified oil-focused portfolio of royalty interests concentrated in southeast Saskatchewan, central Alberta, and west-central Saskatchewan with well-positioned royalty payors. Oil exposure allows for a strong netback (profit) per barrel even during periods of lower commodity prices.
- Source Rock Royalties has a proven track record of executing on its balanced growth and yield business model. The company has achieved 11 years of positive cash flow and provided ~$17 million in dividends back to shareholders since 2014.
- Source Rock Royalties anticipates its current monthly dividend of $0.006 to be comfortably funded with cash flow by current operations down to oil prices of C$60/bbl (or US$50/bbl WTI).
- The management and board of directors have a proven track record of creating value in the oil & gas industry. The insiders own 9.5 percent of Source Rock’s common shares, aligning their interests to that of the shareholders.
- The company has a strong institutional shareholder base with CN Rail Pension Fund owning approximately 21 percent of Source Rock’s common shares.
- Insiders and key shareholders have an average cost on their shares of ~$0.90 (there were never any cheap Founders or seed shares issued).
- Source Rock Royalties does not use debt in its business and always maintains a cash balance (currently ~$2.2 million).
Royalty Assets
Source Rock's current portfolio comprises royalties primarily focused on oil (95 percent), spread across southeast Saskatchewan, central Alberta and west-central Saskatchewan. The company holds varying gross overriding royalties in more than 150,000 gross acres of land. Additionally, Source Rock owns a production volume royalty in Viking mineral interests situated in lands in east-central Alberta.
The majority of Source Rock's royalties are derived from top-line revenue, resulting in minimal exposure to deductions linked to production costs from wellbores and the sale of various commodities. Also, the majority of its current royalty payors are financially stable and possess robust capabilities to efficiently operate and enhance the value of the lands in which Source Rock holds royalties. Some of the key royalty payors include Whitecap Resources (TSX:WCP), Rubellite Energy (TSX:RBY), Surge Energy (TSX:SGY), Crescent Point Energy (TSX:CPG) and Anova Resources (Private), among many others.
1. SE Saskatchewan Light Oil Gross Overriding Royalties
The company holds gross overriding royalties in approximately 35,000 gross acres of land in southeast Saskatchewan. The key operators include Whitecap Resources, Vermilion Energy (TSX:VET), Anova Resources (Private), Crescent Point Energy, Tundra Oil & Gas (Private), ROK Resources (TSXV:ROK), Woodland Development (Private) and Saturn Oil & Gas (TSX:SOIL). Future development activities on gross overriding royalty lands will be focused on the Frobisher Formation. The Frobisher Formation, characterized by shallow depths and conventional light oil, does not necessitate hydraulic fracturing, making it one of Canada's most economically viable light oil plays.
2. Clearwater Heavy Oil Gross Overriding Royalty
The company holds a gross overriding royalty in approximately 61,440 net acres of land in the Figure Lake area of central Alberta. Rubellite Energy is the operator of gross overriding royalty lands and the production is entirely from the Clearwater Formation. The gross overriding royalty initially carries a royalty rate of 1.5 percent until the cumulative royalty revenue received by Source Rock matches the purchase price. At that point, the royalty rate decreases to 1 percent. The operator has committed to drill 59 horizontal wells on the lands by June 2026.
3. Hamilton Lake Unit Viking Light Oil Royalty
Source Rock earns a production volume royalty supported by production from Hamilton Lake Unit and Viking lands of Axiom Oil & Gas. Pursuant to the production volume royalty agreement, Source Rock's remaining entitlement to royalty volumes from the Hamilton Lake Unit is as follows:
- 2024 – 75 bbl/d; 2025 – 70 bbl/d; 2026 – 39 bbl/d
- 2027 to 2034 – 20 percent lower on a per-day basis than the prior calendar year; and
- January 1, 2035 – conversion to a 0.50 percent gross overriding royalty in the Hamilton Lake Unit or a $500,000 pay-out, at the discretion of the royalty payor.
4. Central Alberta and Saskatchewan Gross Overriding Royalties
Source Rock owns varying gross overriding royalties in approximately 60,000 gross acres of land located in west-central Saskatchewan and central Alberta. The west-central Saskatchewan gross overriding royalty lands produce predominantly light oil from the Viking and Mannville formations. The Central Alberta gross overriding royalties produce from various formations and include exposure to several low-decline properties that are under waterflood.
Management Team
Brad Docherty – President, Chairman and Chief Executive Officer
Brad Docherty is the Founder of Source Rock Royalties, and has held the positions of president, chief executive officer and chairman of the company since its incorporation. Previously, he was a corporate finance & securities lawyer at Gowlings and served as the president, CEO and director of Exito Energy and Exitio Energy II, both capital pool companies on the TSXV.
Cheryne Lowe – Chief Financial Officer
Cheryne Lowe is a seasoned financial professional with extensive experience in companies listed on the Toronto Stock Exchange and the TSX Venture Exchange. She also brings a background in the upstream oil and gas industry and the Canadian capital markets. Her most recent role was interim CFO at AgJunction (TSX:AJX), an agriculture technology company, which was acquired in late 2021. Previously, she served as CFO and corporate secretary at Pine Cliff Energy (TSX:PNE), and as vice-president finance and CFO at Orlen Upstream Canada and its predecessor, TriOil Resources. Lowe began her career with KPMG and later worked as an Institutional Research Associate with Tristone Capital.
John Bell – Director
John Bell is the president and chief financial officer at WCSB Blockchain Infrastructure. Prior to this, he served as the director of finance at Tidewater Midstream and Infrastructure (TSX:TWM).
Dean Potter – Director
Dean Potter serves as the executive chairman and CEO of Burgess Creek Exploration. Additionally, he is the president at DPX, a private company engaged in petroleum exploration and development. He is a member of the Saskatchewan oil and gas Hall of Fame and has more than 40 years of geological expertise that has been focused on making discoveries in SE Saskatchewan.
Gary McMurren – Director
Gary McMurren is the vice-president of engineering at Southern Energy (TSXV:SOU). He was previously the vice-president of engineering at Gulf Pine Energy Partners. Formerly, he held various engineering roles with Athabasca Oil (TSX:ATH).
Shaun Thiessen – Director
Shaun Thiessen is vice-president of land and business development at Astara Oil. Prior to this, he held the same title at Astra Oil from inception until its sale. Formerly, he was the director of land at PrairieSky Royalty (TSX:PSK).
Scott Rideout – Director
Scott Rideout is vice-president of land at Headwater Exploration (TSX:HWX). He was previously vice-president of land at both Baytex Energy (TSX:BTE) and Raging River Exploration (Private).
June-Marie Innes – Director
June-Marie Innes is currently CFO at Thread Innovations. She previously held progressively more senior roles at Tamarack Valley Energy (TSX:TVE).
Jordan Kevol – Director
Jordan Kevol is currently involved with Westgate Energy, a private oil and gas producer undertaking a listing on the TSXV. Previously, he was the president & CEO of Blackspur Oil.
This profile was written in collaboration with Couloir Capital.
BPH Energy
Overview
Australia is on the verge of an energy crisis. Inaction by the Australian government on gas and energy security has resulted in a gas market that is very nearly running on empty, with extreme price hikes and the possibility of significant losses in employment and capital. Against the backdrop of a global clean energy transition, natural gas represents a critical fuel for this transition. The switch to renewable energy cannot occur overnight, and natural gas offers an avenue for a gradual transition.
Natural gas represents a low-carbon, low-emission alternative to traditional energy sources, and could even be leveraged for sustainable energy.
BPH Energy (ASX:BPH) intends to do precisely that. An investment company headquartered in Western Australia, BPH has already invested in two highly promising businesses in the energy sector. The first, Advent Energy, is an unlisted oil and gas exploration and production company.
The second, Clean Hydrogen Technologies, has developed a CO2-free method of processing gas into hydrogen and conductive carbon.
BPH has a diversified portfolio with an investment in medical technology company Cortical Dynamics, providing yet another avenue for potential growth.
In February 2024, BPH Energy raised a further AU$2.25 million to execute its next phase of hydrocarbon and Cortical Dynamics funding.
Company Highlights
- BPH Energy is an ASX-listed investment company based in Western Australia.
- The company recently completed a $1.9 million placement to fund further investment in Hydrogen, PEP11 and its carbon gas storage strategy.
- BPH holds a 36.1 percent interest in Advent Energy Limited, and with Advent a 19.5 percent interest in Clean Hydrogen Technologies, and a 17 percent interest in Cortical Dynamics.
- Clean Hydrogen Technology is in the process of upscaling into a much larger commercial operation.
- Cortical Dynamics has the potential to expand its technology not just into the EU marketplace, but globally thanks to a licence and cooperation agreement with Philips.
- The global hydrogen market is projected to grow from less than US$100 billion in 2021 to over US$200 billion by 2030. Demand is projected to reach up to 73 million metric tons by 2050.
- The Australian Corporation and Consumer Commission has warned that developed gas reserves in eastern and southeastern Australia may be unable to meet demand by the end of 2025.
- Due to the predicted gas supply shortfall, Advent Energy's PEP11 asset has generated significant interest among investors and displays the potential for a significant uplift in value.
- PEP11 also has the potential to fill the gap represented by the impending gas shortage.
- BPH Energy's investee company Cortical Dynamics has secured FDA 510(k) clearance in the USA for its flagship technology, the Brain Anaesthesia Response Monitor or BARM™ system version 1.
Key Investments
Advent Energy
An unlisted oil and gas exploration company based in Western Australia, Advent maintains two major assets. The offshore Petroleum Export Permit 11 (PEP11) represents its most compelling asset. Jointly owned by Advent subsidiary Asset Energy (85 percent) and Bounty Oil & Gas NL,(15 percent) the exploration area covers 4,649 square kilometers.
PEP11's estimated prospective recoverable gas resources is 5.7 trillion cubic feet. With this resource alone, BPH and Advent could potentially fulfill the energy needs of most of Victoria and New South Wales for the next several decades. Advent is in the process of applying to the National Offshore Petroleum Titles Administrator (NOPTA) to enable drilling, and recently succeeded in a Federal Court Appeal.
Advent also holds Retention Lease 1, an onshore permit in the Bonaparte Basin.
Highlights:
- Well-positioned Assets: PEP11 is situated less than 50 kilometers from the Sydney-Newcastle greater metropolitan area. In addition to this:
- The Sydney Basin is a proven hydrocarbon basin with excellent potential for further discovery of natural gas.
- It represents the closest potential carbon storage (geosequestration) area to NSW carbon sources which collectively represent 30 percent of Australia's total CO2 output.
- PEP11 may also have potential as a CCS (geosequestration) project in the Sydney Basin.
- Majority Ownership: Asset Energy holds an 85 percent stake in PEP11.
- A Proven Petroleum Basin: Ongoing hydrocarbon seeps have been confirmed in PEP11 along with geophysical indications of escaping gas. The asset's prospectivity is supported by the seismically-indicated gas features historically observed by Advent and a 2011 geochemical report.
Clean Hydrogen Technologies
Based in the United States, Clean Hydrogen Technologies (CHT) leverages its unique catalysts alongside a bespoke engineering process to generate clean hydrogen and conductive carbon from natural gas. The technology uses a process called thermo-catalytic pyrolysis, which combines heat, and a catalyst and has no oxygen. Importantly the process produces no CO2 emission. CHT is currently in the process of commercialization, announcing in February 2024 that it has moved from proof-of-concept to production.
Highlights:
- Patents: Clean Hydrogen has filed two comprehensive patents in the United States with plans to file additional patents in the coming months.
- US-focused and Funding Potential: Clean Hydrogen plans to operate primarily in the United States, allowing it to leverage the federal government's $9.5-billion hydrogen industry investment and $1.2-trillion infrastructure investment and Jobs Act.
- High Investment Potential: BPH Energy with Advent has a 19.5-percent stake in Clean Hydrogen.These investments have the capacity to substantially increase in value with the burgeoning hydrogen market.
Medical Technology Investment
Cortical Dynamics
Cortical Dynamics is an Australian neurotechnology developer and medical device manufacturer focused on developing the next generation brain function monitors by employing the latest theories and technologies in the field.
Headquartered in Perth, Western Australia, Cortical Dynamics is focused on commercializing its core product, the Brain Anaesthesia Response Monitor System (BARM), which was developed with the objective of better detecting the effect of anesthetic and analgesic agents on human brain activity. BARM aids anesthetists in keeping patients optimally anesthetized and pain-free during operations using general anesthesia.
BARM was specifically developed to solve several problems associated with anesthetic and analgesic delivery in the operating theater and negative post-operative consequences. Its proprietary algorithms are based on innovative developments in understanding how the brain's rhythmic electrical activity or EEG is produced.
Highlights:
- Physiology-based algorithm: Unlike other monitors, BARM’s algorithms are based on the individual patient’s physiological processes that produce electrical activity in the brain, providing more interpretable and personalized monitoring of their response to anesthetic agents.
- Global patents: Cortical has an extensive and growing global patent portfolio, and has secured FDA 510(k) clearance in the USA for its flagship technology, the Brain Anaesthesia Response Monitor or BARM™ system version 1.
- Regulatory Approvals: BARM version 1 is approved by regulatory bodies in Australia, the European Union and Korea. However, Cortical will be commercializing version 2, which is an enhancement of version 1 made possible through a technical partnership with the Austrian Institute of Technology in Vienna.
- Business Model: Cortical intends to sell BARM V2 devices with associated recurring sales of the disposable single-use head sensors to hospitals or day surgeries, internationally.
BARM Sensors
- World-class Team: A team of experienced researchers, biomedical engineers and corporate financiers make up Cortical Dynamics, with a global network of key opinion leaders and clinicians advising the company on the development of the BARM technology based on real challenges they face in the operating room.
- Philips Partnership: Cortical Dynamics has a non-exclusive license and cooperation partnership with global medical industry player Philips Electronics North America to interface the BARM system with Philips’ operating theater monitors.
- Artificial Intelligence App: Partially funded through a grant, the Cordyan is an AI-based app that has been developed to help clinicians, researchers and hospitals better understand the implications of using anesthetic agents on humans.
Management Team
David Breeze — Managing Director and Executive Chairman
David Breeze is a corporate finance specialist with extensive experience in the stock broking industry and capital markets. He has been a corporate consultant to Daiwa Securities, manager of corporate services for Eyres Reed McIntosh, and state manager and associate director for the stock broking firm BNZ Norths. Breeze is a fellow of the Institute of Company Directors of Australia. He has published in the Journal of Securities Institute of Australia and has also acted as independent expert under the Corporations Act. He has worked on the structuring, capital raising and public listing of more than 70 companies involving more than $300 million, covering a range of areas including oil and gas, gold, food, manufacturing and technology. Breeze is chairman of Grandbridge Limited, a public investment and advisory company and MEC Resources, a public company investing in exploration companies that target potentially large energy and mineral resources. He is also chairman of Advent Energy.
Tony Huston
Tony Huston has been involved for over 35 years in engineering and hydrocarbon industries for both on and offshore exploration/development. His early career experience commenced with Fitzroy Engineering, primarily working on the development of onshore oil fields. In 1996, Huston formed his own E&P company on re-entry of onshore wells primarily targeting shallow pay that had been passed or ignored from previous operations. This was successful and the two plays opened up 15 years ago and are still in operation. His focus over the last 10 years has been to utilize new technology for enhanced resource recovery, which has been demonstrated in various fields, including US, Mexico, Oman, Italy and Turkmenistan.
Charles Maling
Charles Maling was formerly the communications officer for the Office of the Western Australian State Government Environmental Protection Authority, advising the chairman of the EPA on media issues. Maling has worked with the Western Australian State Government Department of the Environment for 14 years and a further eight years for the EPA. His administrative roles included environmental research (including a major study on Perth Metropolitan coastal waters and Western Australian estuaries) environmental regulation and enforcement, and media management.
Dr Sunil Nagaraj - Chief Scientist (Cortical Dynamics)
Dr. Sunil Belur Nagaraj obtained his master’s degree from the University of Victoria in Canada in 2010; and doctoral degree from University College Cork, Ireland in 2015. His doctoral research centered around the development of AI-based real-time brain monitoring, utilising EEG recordings to monitor brain activity. After a role as a postdoctoral fellow at the Harvard Medical School/Massachusetts General Hospital in the USA. Nagaraj assumed the position of an assistant professor of medicine at the University Medical Centre Groningen in The Netherlands for two years. Concurrently, he dedicated three years to working as a scientist at Royal Philips, where he specialised in sleep disorders at the Innovation Forum, highlighting its potential to provide future insights into heart-brain connectivity.
Throughout his career, Nagaraj has demonstrated exceptional research acumen, with a patent and 21 high-impact journal articles to his name, amassing over 650 pioneering research papers and has been recognised through several national and international grants, enabling him to conduct cutting-edge studies that contribute significantly to the advancement of medical technology.
Impressive Initial Flow Test Results
HIGHLIGHTS
- Highly encouraging initial flow test in the Lorelle Sandstone
- Stabilised flow rate of 1.3 million cubic feet per day achieved without stimulation
- Stimulation and multiple zone flow testing to follow imminently
Following a recent successful suite of Diagnostic Formation Integrity Tests (DFITs) conducted at Daydream-2, the Company decided to test the free-flowing capacity of the Lorelle Sandstone between 4,200 and 4,217 metres (the zone which flowed into the well bore late last year).
The test has been highly successful – with a maximum rate of 2.3 Million Standard Cubic Feet Per Day (MMSCFPD) and stabilised flow rate of 1.3 MMSCFPD (through a 20/64 choke). Elixir understands this is the deepest unstimulated flow of gas in onshore Australia East of the Perth Basin.
Flare (estimated to be 15 metres in height) from the Lorelle Sandstone Test at Daydream-2 during the 1st flow period
Some short videos of the flare are available on YouTube: https://youtu.be/kGUUhsLojNE
The flow test was conducted following encouraging results from the DFIT over the permeable Lorelle Sandstone (the other DFITs conducted went to plan and provided useful data for the final design of the stimulation program). The test was conducted over two distinct flow periods. The well is now shut in for longer term pressure build-up before stimulation begins later in the month.
The testing work was not impeded by heavy recent rain in the region, which reflects its favourable ease of access and well constructed civil works. The Daydream-2 lease could well be utilized again for another appraisal well – Daydream-3 – for which preliminary planning has commenced (but whose final design will ultimately be informed – inter alia – by the imminent outcomes from Daydream-2).
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Helium Evolution
Overview
Home to the largest helium purification facility in Canada and one of the most highly concentrated helium resources in the world, the province of Saskatchewan is an emerging jurisdiction for helium exploration and production. With its proximity to the US, one of the world’s largest helium consumers, the province is accelerating the development of its helium sector.
Through the Helium Action Plan, launched in 2021, the Saskatchewan government aims to improve its competitiveness and increase investments across the helium value chain: from exploration and production to innovation, processing and exports.
Helium Evolution (TSXV:HEVI) is a Canadian helium exploration and production company focused on developing its helium assets in southern Saskatchewan. It’s leveraging Saskatchewan’s value proposition as a ‘green’ alternative to harvesting helium as a byproduct of natural gas. HEVI owns land rights to approximately 5.6 million acres, representing the largest land package in Canada controlled by a public entity.
HEVI’s land package is located in a helium-rich area and in close proximity to the US market, which is among the largest helium consumers in the world.
HEVI selected southern Saskatchewan for a variety of reasons. First, the decaying uranium in the area’s basement rocks has produced significant helium reserves throughout southern Saskatchewan. Second, Helium Evolution’s target geological formation, known as “The Deadwood”, contains up to 2 percent proven helium content alongside more than 95 percent nitrogen content. Existing geophysical data is readily available and will help Helium Evolution select the best drill targets.
Why does this matter? The presence of nitrogen as the carrier gas allows Helium Evolution to vent the gas in an environmentally friendly manner while also providing cost advantages during the helium extraction and liquefaction processes. Additionally, drilling for helium is similar to extracting conventional natural gas, meaning there’s no need for specialized equipment, and management’s existing oil and gas development expertise can be leveraged. Low-cost vertical drilling is all that’s required for HEVI to begin extraction.
HEVI’s unique competitive advantage comes in the form of a farm-out agreement with and a $3.5-million equity investment by North American Helium (NAH). The farm-out deal enables NAH to drill five development wells on HEVI land, with an option for two additional wells, offering HEVI near-term drilling catalysts that can accelerate cash flow generation without incurring up-front capital costs, all while retaining 99 percent of its land base.
The agreement also provides HEVI, at no cost, NAH’s proprietary seismic recently used to drill three successful and producing NAH wells in the Mankota area, giving HEVI greater insight and valuable data that can be used in identifying future targets.
HEVI’s landholding is adjacent to NAH’s discovery of two helium pools at Mankota and Cadillac. The Mankota Pool is a nitrogen-rich reserve with helium concentrations of 0.94 percent to 1.08 percent.
HEVI land is adjacent to NAH’s Cadillac and Mankota Discoveries
In November 2023, HEVI made its first joint helium discovery with NAH following the completion of the Deadwood zone and initial testing of the joint well drilled at 2-31-2-8W3 (Joint Well #1). The well underwent a series of tests to confirm flow rates, reservoir boundaries and gas composition, all of which represent important data points to help inform future development plans in the area. Joint Well #1 had helium concentrations of 0.95 percent – more than three times the 0.3 percent level deemed commercially viable – and 96 percent nitrogen. This gas composition is consistent with NAH's producing helium pool 15 kilometers to the north, supporting HEVI's belief that the area offers meaningful potential for commercial helium development.
HEVI is led by an impressive management team with a combined 150 years of resource development experience, including engineering, geological and executive management across the corporate landscape. CEO Greg Robb boasts 35 years of direct experience in Western Canada, where he focused on the acquisition and development of natural resources in the region. Patrick Mills, COO, brings over three decades of executive, managerial and engineering experience in Western Canada. Kristi Kunec, CFO, brings over 15 years of financial experience to HEVI, with a proven track record that includes leading the corporate finance, organizational planning and financial reporting functions for growing resource companies. Furthermore, vice-president John Kanderka has 40 years of directly applicable experience in the energy and mineral sectors, serving as an officer in both public and private entities. The management team is complemented by a strong board of directors, including the former premier of Saskatchewan, Brad Wall.
Company Highlights
- Helium Evolution Incorporated (HEVI) is capitalizing on the untapped potential of Saskatchewan’s helium resource.
- The company has land rights to approximately 5.6 million acres, representing the largest land package held by a public company in North America.
- HEVI made its first helium discovery with 0.95 percent helium concentration at Joint Well #1, confirming an important step along HEVI's journey to achieving scalable helium production.
- HEVI’s Saskatchewan holdings put the company in a natural resource-friendly province with a skilled local workforce and a supportive government.
- HEVI is focused on helium extraction in wells that have nitrogen as the carrier gas, creating an environmentally friendly operation that will also create a cost advantage during the extraction and liquefaction processes.
- HEVI’s land package contains significant helium targets created by radioactive decay; existing exploration data will help the company select drill targets offering higher probabilities of success.
- Enhanced farm-out agreement with North American Helium provides HEVI near-term drilling catalysts that can accelerate cash flow generation without incurring up-front capital costs.
- The company is led by an impressive management team with a combined 150 years of experience in resource development and executive leadership.
Key Project
The Deadwood
Helium Evolution is targeting a geological formation known as “The Deadwood Sand Reservoir” for its initial exploration and development. More than 185 potential helium anomalies have already been identified.
Project Highlights:
- Existing Geophysical Data: Helium Evolution has acquired a significant amount of data, including well logs, aeromagnetic data and seismic data to assess the best drill targets.
- Simple Drilling Process: Drilling for helium is similar to conventional natural gas drilling, only requiring a vertical drill and does not require specialized equipment or fracture stimulation.
- Nitrogen Carrier Gas: Nitrogen is the primary carrier gas, allowing for environmentally friendly venting and a cost advantage during extraction and liquefaction
- Nearby Wells: A nearby helium development, the Mankota Pool, has demonstrated a nitrogen-rich reserve boasting helium contents of up to 1.08 percent and has a nearby helium production facility.
- Competitive Advantage: Farm-out agreement with NAH, wherein NAH will cover 100 percent of the cost of drilling five wells, with an option for two additional potential wells, for an 80 percent interest in that well’s section, plus nine contiguous sections of land (40,960 net acres). HEVI retains 20 percent working interest in earned lands and each successful well drilled by NAH, and the right to participate in development wells at 20 percent working interest.
- First helium discovery in November 2023: Initial testing of the joint well drilled at 2-31-2-8W3 (Joint Well #1) confirmed helium concentrations of 0.95 percent – more than three times the 0.3 percent level deemed commercially viable – and 96 percent nitrogen.
- Post-flow pressure transient analysis (PTA): Conducted by Petro Management Group on behalf of HEVI, the PTA revealed positive insights that highlight a potentially expansive and productive reservoir with no reservoir pressure depletion or reservoir boundaries. The PTA also calculated an absolute open flow potential of 13.3 MMscf/d.
- 2024 drilling plans: HEVI and its partner North American Helium plan to drill up to nine joint development wells, which are expected to spud between Q3 2024 and Q2 2025, subject to surface and environmental restrictions.
Management Team
Greg Robb - President and Chief Executive Officer
Greg Robb brings more than 35 years of experience across all facets of Western Canadian energy resource activity, including exploration and development, acquisitions and dispositions, and reserve valuations. He previously held executive positions in several E&P companies and founded Salvo Energy Corp. in 2006. He has extensive experience in heavy oil, shallow gas, coal bed methane, deep basin tight gas, and conventional oil and gas plays, evaluating over $500 million of acquired assets.
Patrick Mills - Chief Operating Officer
Patrick Mills has more than 36 years of executive, managerial, and engineering and operational experience in the Western Canadian Sedimentary Basin. He previously founded Mustang Resources and Pegasus Oil & Gas, where he held executive and board positions, as well as technical and managerial positions with Texaco, Imperial Oil and Startech Energy.
Kristi Kunec - Chief Financial Officer
Kristi Kunec has more than 15 years of financial experience, with a proven track record that includes leading the corporate finance, organizational planning and financial reporting functions for growing resource companies. Over the last 13 months, she has served as part-time controller for Kanata Clean Power & Climate Technologies, and prior to it, she was chief financial officer and corporate secretary for Pine Cliff Energy (TSX:PNE). Kunec directly contributed to the growth of the company from approximately 100 boe/d to 24,000 boe/d, which included closing four equity offerings that raised more than $170 million, and the completion of two corporate and seven asset acquisitions. Prior to Pine Cliff, Kunec was controller for North American Oil Trust, corporate controller for Orion Oil & Gas, and manager of financial reporting for TransGlobe Energy. After graduating with a Bachelor of Commerce from the University of Saskatchewan, she began her career at PriceWaterhouseCoopers LLP in 2003, earning her CPA, CA designation in May of 2006.
John Kanderka - VP, Corporate Development
John Kanderka has more than 40 years of experience in the energy and mineral sectors as an officer and director of private and public entities. He founded multiple companies leading to a wide array of experience in corporate finance, mergers and acquisitions, buyouts, and corporate restructuring. He is currently a director of Orestone Mining and chairman and founder of Visionary Gold.
James P. Baker - Chairman of the Board
James Baker has over 40 years of resource development experience in Saskatchewan and Alberta in field operations, consulting, and executive-level positions. Extensive experience consulting to industry and government in oil and gas, power, and paper recycling. Currently a board member of Kineticor Resource, a former director of SaskEnergy, Hanson Engineering, and Heritage Gas.
Brad Wall - Director
Brad Wall is a special advisor in the Osler Calgary office. Prior to joining Osler, he was in politics for 18 years where he demonstrated a consistent ability to bring political and business leaders together as he implemented creative ways to bolster the Province’s economic well-being. Wall was elected as Premier of Saskatchewan and helped lead the province to a period of record population and economic growth, export expansion, record infrastructure investment and tax reductions while helping to earn the province's first-ever AAA credit rating. Wall offers Osler clients his strategic insight and guidance, particularly in relation to the energy and agri-food industries.
Philip Hughes - Director
Phillip Hughes has served as president and chief executive officer of five energy companies across Canada. He has extensive North American and international experience in electrical generation, transmission and distribution, oil and gas and natural gas transmission, distribution and processing. Currently, Hughes serves as chairman of Oceanic Wind Energy Group and of Kineticor Resource.
Michael Graham - Director
Michael Graham is an independent businessman with over 35 years of oil and gas experience. Graham served as an executive vice-president of EnCana Corporation from April 14, 2005, and served as its president of the Canadian Division until February 2012. Graham also serves on the board of directors of Halo Exploration and Saguaro Resources.
Jeff Barber - Director
Jeff Barber was a co-founder and managing partner of a boutique M&A advisory firm in Calgary. He was an investment banker with national investment firms and began his career as an economist with Deloitte LLP. Barber has served on the board of Standard Lithium since 2017 and has been an independent businessman since September 2018. He has been a founder, director, and chief financial officer of Hiku Brands Company since 2016. He is a CFA charter holder and holds a master’s degree in finance and economics from the University of Alberta.
Heather Isidoro - Director
Heather Isidoro has more than 20 years of experience in the energy industry, the last 17 of which were focused on business development, most recently as the vice president of Business Development with Pine Cliff Energy Ltd. She specializes in acquisitions and divestitures, reserves valuations, and financial modeling. Isidoro is president and a director of the Petroleum Acquisitions and Divestitures Association, and a trustee of the University of Saskatchewan Engineering Advancement Trust. She has a BSc in geological engineering from the University of Saskatchewan and an MBA from Athabasca University.
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