“BPH Energy wishes to advise in light of recent media coverage regarding former Prime Minister Scott Morrison’s use of ministerial powers to block the PEP-11 gas exploration licence, the Company is currently undertaking a full review of its options, including legal channels.”
This is the opening paragraph to a release from BPH Energy (ASX:BPH) published today, to which shareholders and investors have responded with a surprising level of positive sentiment.
BPH shares are up over 70% in early afternoon trade to 2.4c.
PEP-11 is a 4,500km² gas exploration licence covering an offshore block near the coast of NSW.
In the lead-up to the Federal Election earlier this year, the Federal government, then under Scott Morrison, rejected BPH’s application to extend the licence for two years, effectively culling the project.
That application had been sitting in something of a limbo, with BPH first making applications to the regulator and relevant departments in early 2020.
Worth noting is that Anthony Albanese had promised the same. Environmental concerns encouraged strong community opposition to the project, and the licence became the subject of much media speculation.
Back in June, BPH appealed to the Federal Court for a Judicial Review of the PEP-11 cancellation, via its subsidiary Asset Energy.
However, in recent weeks, it has become apparent that Scott Morison appointed himself as a co-minister to the Federal resources portfolio, along with several others. The move has, outside of the world of finance, become a political scandal.
In that scandal, BPH sees renewed hope for its ability to get back PEP-11, or at the very least, overturn the original veto.
Earlier today, the Solicitor General of Australia determined Scott Morrison’s self-appointment to the Resources portfolio was “valid.”
While the SG cleared the former Prime Minister of any illegal conduct, it was noted that Scott Morrison’s actions defied convention.
A convention, however, is not legally binding on its own right, and so whether or not the former Prime Minister’s actions will ultimately lead to an overturning of the decision to reject BPH’s extension application for PEP-11 remains to be seen.
Shareholders in BPH would also be well advised to consider the current relationship between the Greens and the ALP.
Albanese said before the election he too would overturn PEP-11 if elected, and so even if BPH Energy do take Scott Morrison to court, and win, they will then have Albanese to deal with.
Clearly, BPH Energy investors (and corporate counsel) want compensation for what they perceive to be a loss of otherwise guaranteed value.
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