Federal Court dismisses PEP 11 review; Onshore Energy in administration; Cortical and CHT progress

Federal Court Upholds PEP 11 Permit Refusal

BPH Energy Limited (ASX:BPH) faces a significant legal hurdle as the Federal Court dismissed the judicial review application lodged by Advent Energy’s subsidiary Asset Energy challenging the refusal of the PEP 11 permit extension. The Commonwealth-New South Wales Offshore Petroleum Joint Authority’s decision to deny the extension remains intact following the June 17 ruling by Honourable Justice Jackson.

The Court acknowledged procedural fairness issues related to undisclosed well costings but ruled these were immaterial given overriding public interest grounds justifying the refusal. Parliamentary statements reflecting community views were accepted as evidence, protected by parliamentary privilege from challenge.

Undeterred, Advent Energy has appealed the decision to the Full Court of the Federal Court of Australia, engaging Senior Counsel, though the timing of this appeal remains uncertain. This ongoing legal saga continues to cloud the future of the highly prospective PEP 11 offshore gas exploration permit, a key asset for both Advent and BPH Energy.

Onshore Energy Subsidiary Enters Voluntary Administration

Adding to BPH’s challenges, Advent’s wholly owned subsidiary Onshore Energy Pty Ltd has entered voluntary administration as of April 2026. Persistent delays, shifting regulatory frameworks, and Aboriginal Heritage claims have hampered operations in Northern Australia, particularly concerning Exploration Permit EP386 and Retention Licence RL1, which includes the Weaber Gas Field.

The appointed administrator, Bryan Hughes of 101 Advisory, is assessing Onshore’s assets and liabilities to determine viable outcomes. These could range from a deed of company arrangement enabling continued operations to a winding-up recommendation. No assurances were provided regarding RL1’s development prospects or Onshore’s survival as a going concern.

Cortical Dynamics Nears Clinical Trials for AI Brain Monitor

On a more optimistic note, Cortical Dynamics Limited, in which BPH holds a 16.4% stake, is close to completing technical development of its BARM 2.0 Minimum Viable Product. This AI-enhanced brain and pain monitoring device uniquely combines EEG with AI to provide real-time anaesthetic depth and pain response monitoring, addressing a critical gap in current surgical care.

Following technical completion, BARM 2.0 will undergo electrical safety testing and biocompatibility assessments before clinical trials scheduled in the USA and the Netherlands. Cortical has also bolstered its US market strategy by appointing two senior retired US military healthcare generals to its advisory team, enhancing its credibility and connections in a key market.

Clean Hydrogen Technologies Advances Pilot Production and Funding

Clean Hydrogen Technologies (CHT), another BPH investee with a 16.1% interest, has demonstrated consistent production of turquoise hydrogen and carbon nanotube (CNT) composites at its pilot plant in Nashik, India. The process emits no CO2 and uses hydrocarbons from natural gas as feedstock.

CHT is engaging potential partners for end-use applications of its CNT composite, including battery energy storage systems and cement impregnation, currently at the memorandum of understanding stage. It is also progressing project funding, including Singapore government grants, to support clean hydrogen supply for data centres, collaborating with Horizon Fuel Cells in the USA.

Importantly, CHT is preparing for a proposed NASDAQ listing via a SPAC transaction, contingent on securing project-level funding. BPH holds options convertible at US$3,000 per share, maintaining significant equity exposure.

Related Party Transactions and Cash Flow Highlights

The quarterly cash flow report reveals related party transactions including loans to Advent Energy ($816,800) and Cortical Dynamics ($400,000), alongside fees received from Grandbridge Limited. Director remuneration totaled $19,470 during the quarter. These movements underline ongoing financial support for BPH’s investees as they navigate operational and developmental milestones.