Top End Energy’s US Hydrogen Push Faces Critical Resource Assessment and Drilling Milestones
Top End Energy has completed its strategic acquisition of Serpentine Energy, significantly expanding its natural hydrogen footprint in Kansas and advancing towards its first well drilling, while also progressing exploration in Australia’s Northern Territory.
- Completed acquisition of Serpentine Energy securing 20,000 acres in Kansas
- Expanded leasehold to 25,000 acres, targeting 30,000 acres by Q2 2025
- Selected first drilling site in Marshall County with well design underway
- Initiated independent prospective resource assessment led by Teof Rodrigues & Associates
- Appointed Luke Velterop as new CEO, bringing deep sector expertise
Strategic Acquisition and Lease Expansion
Top End Energy Limited (ASX: TEE) has marked a pivotal quarter by completing the acquisition of Serpentine Energy Pty Ltd, securing a substantial 20,000-acre landholding across Marshall, Riley, and Washington counties in Kansas, USA. This acquisition places TEE at the heart of an emerging natural hydrogen hotspot, where major industry players like Mitsubishi Heavy Industries and Osaka Gas are intensifying investment.
Building on this momentum, the company has expanded its leasehold by 25% to 25,000 acres, with a clear target to reach 30,000 acres in the second quarter of 2025. This aggressive lease expansion aims to consolidate TEE’s early-mover advantage in a competitive landscape, particularly near Koloma’s operations, a key regional player.
Advancing Drilling and Resource Assessment
TEE has selected its inaugural well site in Marshall County, guided by structural geological features and recent data releases from Koloma. The company has secured surface use agreements and is progressing well design, targeting a depth of 5,500 feet into the Precambrian basement, a promising horizon for natural hydrogen exploration.
Complementing these operational steps, TEE has engaged Teof Rodrigues & Associates to conduct an independent prospective resource assessment across its Kansas leasehold. This assessment, adhering to the Petroleum Resources Management System (PRMS), is expected to deliver critical insights in Q2 2025, shaping drilling priorities and strengthening investor and partner engagement.
Northern Territory Exploration Progress
Back in Australia, TEE continues to advance its exploration and appraisal programs within the Northern Territory, focusing on the Beetaloo Sub-basin and South Nicholson basin permits. The company’s permits are strategically positioned adjacent to major infrastructure such as the Amadeus and Northern Gas Pipelines, offering potential access to both local and east coast gas markets.
TEE’s exploration activities align with heightened regional activity, including drilling by Tamboran Resources, Empire Energy, and seismic acquisition by Santos. The company is refining its portfolio to concentrate on high-potential permits, positioning itself to capitalize on the expected acceleration of production in the region.
Leadership and Financial Position
In a significant corporate development, Luke Velterop was appointed CEO during the quarter. Velterop brings extensive leadership experience in both traditional and emerging energy sectors, including his role as founding director of Serpentine Energy and former COO of HyTerra. His substantial shareholding of approximately 10% underscores a strong alignment with shareholder interests.
Financially, TEE reported exploration expenditure of approximately A$666,000 for the quarter and maintains a healthy cash balance of around A$5.1 million as of 31 March 2025, providing a solid foundation for its ambitious growth plans.
Bottom Line?
Top End Energy’s rapid expansion and technical progress in the US and Australia set the stage for a transformative year ahead in natural hydrogen exploration.
Questions in the middle?
- What will the independent prospective resource assessment reveal about the Serpentine Project’s hydrogen potential?
- How will TEE’s drilling outcomes influence its ability to attract strategic partners and capital?
- What impact will increased activity in the Northern Territory have on TEE’s production timelines and valuation?
