BPH Energy Loses Court Battle Over Major Gas Permit as Appeal Decision Looms
Federal Court dismisses PEP11 judicial review as BPH Energy weighs appeal options
BPH Energy has advised that the Federal Court of Australia dismissed the judicial review application brought by Asset Energy and Bounty Oil & Gas concerning the PEP11 offshore petroleum permit on 17 June 2026. The decision by Justice Jackson means the Commonwealth–New South Wales Offshore Petroleum Joint Authority’s refusal of the joint venture’s extension, variation, and suspension applications now stands. BPH holds a 35.8% interest in Advent Energy, which owns Asset Energy, the operator of the PEP11 joint venture.
Asset Energy holds 85% of PEP11, with Bounty Oil & Gas holding the remaining 15%. The company is reviewing the judgment with advisers and, together with joint venture participants, considering all available options including an appeal. Advent intends to engage Senior Counsel to advise on appeal prospects.
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What the Federal Court found — and what it means for PEP11
Justice Jackson’s judgment delivered three key findings in Federal Court proceedings WAD36/2025. The Court dismissed the application for judicial review, meaning the Joint Authority’s January 2025 refusal decision remains in effect. Asset Energy was found to have been denied procedural fairness relating to undisclosed well costings used by the regulator. However, the Court ruled this procedural fairness breach was not material because the public interest ground independently justified the refusal.
The judgment also addressed how the Joint Authority used statements made in the NSW Parliament. The Court held that the regulator was able to rely on what was said in Parliament as reflecting community views, but Parliamentary privilege prevented any challenge to the truth of those statements.
| Court Finding | Implication for PEP11 |
|---|---|
| Application for judicial review dismissed | Refusal decision stands |
| Procedural fairness denied on well costings | Acknowledged but ruled not material |
| Parliamentary statements relied upon | Cannot challenge truth of statements |
The Court acknowledged a procedural fairness issue existed but determined it was not determinative. The “public interest” ground independently supported the refusal, which may limit the legal traction available on appeal. The order suspending the Joint Authority’s refusal decision will be vacated from 5pm AWST on 1 July 2026, with cost submissions due by mid-July.
The Federal Court hearing on PEP 11 concluded in February 2026 with Justice Jackson reserving the decision, leaving BPH Energy shareholders in an extended waiting period before the June ruling resolved the question of whether the Joint Authority’s refusal would stand.
What is PEP11 and why does it matter for east coast gas supply?
PEP11 is an offshore petroleum exploration permit located in the lower Hunter Region of New South Wales, covering approximately 4,649 square kilometres less than 50km from the Newcastle metropolitan area. An offshore exploration permit allows companies to explore for oil and gas in designated areas. If commercial discoveries are made, the permit holder can progress to production activities, subject to further approvals.
The PEP11 joint venture considers the permit to be highly prospective for natural gas. The Australian Energy Market Operator (AEMO), the Australian Competition and Consumer Commission (ACCC), and other agencies have identified a forecast east coast gas supply shortfall. The joint venture positions PEP11 as a potentially significant contributor to addressing this supply gap.
Asset Energy operates the permit with an 85% interest, while Bounty Oil & Gas holds 15%. BPH Energy’s exposure to PEP11 is indirect, through its 35.8% interest in Advent Energy, which owns Asset Energy.
The permit’s strategic value is tied to Australia’s projected gas shortfall. If the permit can be advanced — whether through appeal or renewal — it represents potential exposure to a supply-constrained domestic gas market.
Separate renewal application remains before NOPTA
A separate pathway remains open despite the Federal Court dismissal. In March 2025, Advent lodged a renewal application with the National Offshore Petroleum Titles Administrator (NOPTA) covering 50% of the existing PEP11 permit area. This renewal application is distinct from the Federal Court proceedings and remains under consideration by NOPTA.
Importantly, the PEP11 permit remains in force pending NOPTA’s consideration and determination of the renewal application. The permit has not lapsed. Advent has stated it will continue to address the renewal application further with NOPTA.
| Renewal Application Detail | Status |
|---|---|
| Lodged | March 2025 |
| Coverage | 50% of existing PEP11 area |
| Current status | Pending NOPTA consideration |
| Permit status | Remains in force pending determination |
The renewal pathway offers a potential route forward even if the appeal on the original refusal is unsuccessful. Investors should monitor both tracks — the potential appeal of the Federal Court decision and the separate NOPTA renewal process.
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What happens next for BPH Energy shareholders
BPH and joint venture participants are considering all options including an appeal of Justice Jackson’s decision. Advent intends to engage Senior Counsel to advise on appeal prospects. The company has stated it will keep the market informed of material developments, including any decision on an appeal or further action by the PEP11 joint venture, in accordance with continuous disclosure obligations.
BPH’s trading halt has been lifted following the announcement. The Court’s order suspending the Joint Authority’s refusal decision will be vacated from 5pm AWST on 1 July 2026.
Key upcoming dates and milestones:
- Suspension of refusal decision vacated: 1 July 2026 (5pm AWST)
- Cost submissions due: 1 July 2026
- Responsive cost submissions due: 15 July 2026
- Appeal decision: To be advised
The next several weeks will be critical for clarity on whether an appeal proceeds. Separately, investors should track the timeline for NOPTA’s consideration of the renewal application lodged in March 2025.
Announcement Authorisation
David Breeze (Director) authorised the release of this announcement to the market.
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