BPH’s energy assets face appeal uncertainty and a possible subsidiary winding-up

PEP11 appeal keeps Advent’s offshore permit dispute alive

BPH Energy Limited (ASX:BPH) has preserved a legal pathway for its key energy investment after Advent Energy, in which BPH holds a 35.8% direct interest, appealed the Federal Court’s dismissal of its PEP11 judicial review application. The appeal follows the PEP11 Federal Court appeal reported in July, but the filing makes clear that the original refusal remains in place while the Full Court considers the matter.

The Federal Court found that Asset Energy was denied procedural fairness over undisclosed well costings, but held that the error was not material because the public interest ground independently justified refusal. It also found that the Joint Authority could rely on statements made in the NSW Parliament as reflecting community views, while parliamentary privilege prevented a challenge to their truth. The timing of the appeal hearing and determination remains with the Full Court.

Separately, Advent applied to NOPTA in March 2025 to renew a PEP11 permit covering an area equivalent to 50% of the existing permit area. That application remains under consideration. The distinction matters: the appeal challenges the judgment surrounding the refused variation, suspension and extension applications, while the renewal application is a separate unresolved regulatory process.

Onshore subsidiary faces administration and possible winding-up

The more immediate portfolio problem sits onshore. Onshore Energy, Advent’s wholly owned subsidiary that holds EP386 and RL1 in Northern Australia, entered voluntary administration on 10 April 2026 after delays, changes in government action and regulatory settings, and Aboriginal Heritage claims adversely affected operations.

The administrator is assessing Onshore’s assets and liabilities. Possible outcomes include a deed of company arrangement that allows the business to continue as a going concern, or a recommendation that it be wound up. RL1, which contains the Weaber Gas Field, is the subsidiary’s primary asset, but BPH says there is no assurance the lease will be developed or that Onshore will continue operating.

Cash remains available, but much of the quarter’s capital went to investees

BPH reported net operating cash outflows of $182,000 for the September quarter and net investing outflows of $972,000. The investing figure comprised loans of $571,450 to Advent Energy, $394,000 to Cortical Dynamics and $7,000 to Molecular Discovery Systems. Cash and cash equivalents stood at $1.127 million at quarter end, compared with $2.281 million at the beginning of the period.

On the quarter’s reported operating cash use, that balance equates to approximately 6.2 quarters of funding. It is a mechanical runway estimate rather than a forecast of total funding needs: it does not capture the potential cost of the PEP11 appeal, Onshore administration, further investment support or project-level funding for portfolio companies. BPH also disclosed $56,000 of related-party operating payments, including director remuneration and fees paid to Grandbridge, alongside $972,000 of related-party investing payments.

Cortical and hydrogen projects remain dependent on execution and funding

Cortical Dynamics is nearing technical completion of its BARM 2.0 minimum viable product, which combines EEG and artificial intelligence for hypnotic-depth and pain-response monitoring. The device is expected to undergo electrical safety testing, while its BarSensors are due for biocompatibility and ageing tests before clinical trials and regulatory submissions. Trials in the United States and the Netherlands are scheduled after technical completion, subject to funding.

Clean Hydrogen Technologies says it has consistently produced turquoise hydrogen and a carbon-nanotube composite at its Nashik pilot plant. Its commercial ambitions remain at an earlier stage: discussions over battery-storage and cement applications are at memorandum-of-understanding stage, while proposed Singapore and US data-centre programs require project funding. CHT is also pursuing funding support ahead of a proposed NASDAQ SPAC transaction, but no completed listing or commercial funding outcome is reported here.