Serpentine Project’s 629 BCF High Estimate Signals Major Hydrogen Potential
Top End Energy reports a maiden independent prospective hydrogen resource of 304 billion cubic feet at its Serpentine Project in Kansas, highlighting strong resource density and advancing farm-out discussions.
- Maiden independent prospective hydrogen resource estimate of 304 BCF mean
- Serpentine Project covers approximately 31,000 acres in Kansas, USA
- Resource density among the highest globally for natural hydrogen
- Farm-out process initiated to attract development partners
- Further exploration planned to refine resource estimates and reduce risk
Independent Assessment Highlights Scale
Top End Energy Limited (ASX, TEE) has announced an independent prospective resource assessment for its 100% owned Serpentine Natural Hydrogen Project in Kansas, USA. The assessment, conducted by Teof Rodrigues & Associates, estimates a mean net recoverable hydrogen resource of 304 billion cubic feet (BCF), with a low estimate of 71 BCF and a high estimate reaching 629 BCF. This maiden resource estimate positions the project as a significant player in the emerging natural hydrogen sector.
Strong Resource Density Underpins Viability
Spanning approximately 31,000 acres, the Serpentine Project exhibits a resource density that ranks among the world’s highest for natural hydrogen. This density is a critical factor supporting the technical viability of the project and bolsters Top End Energy’s case for advancing exploration drilling. The resource volumes assessed include reservoirs from depths of 1,500 feet down to the basement rock, with additional upside potential identified in shallower intervals where peer drilling has recorded hydrogen concentrations as high as 96% at depths less than 1,000 feet.
Strategic Location and Development Prospects
The project’s location in Kansas offers strategic advantages, including direct access to established gas infrastructure, major highways, rail networks, and proximity to industrial markets across the US Midwest. These factors contribute to a favorable chance of development, estimated at 70%, assuming a discovery is confirmed. The chance of geologic discovery remains at 10%, reflecting the early-stage nature of exploration and the need for further appraisal.
Farm-Out Process and Next Steps
Top End Energy has commenced a farm-out process aimed at securing development partners to share the costs and expertise required for exploration and early-stage development. The company plans to release a selection of technical materials later this month to support this process. Ongoing work includes detailed geological modelling, subsurface interpretation, and planned drilling and geophysical surveys to refine resource estimates, narrow uncertainty ranges, and incorporate additional volumes from shallow reservoirs.
Cautious Optimism Amid Early-Stage Exploration
While the resource estimates are prospective and unrisked, the company is transparent about the inherent risks, including the chance of discovery and commercial development. Further exploration and evaluation are essential to confirm the presence and recoverability of natural hydrogen in commercially viable quantities. Nonetheless, this independent assessment marks a significant milestone for Top End Energy, reinforcing its position at the forefront of natural hydrogen exploration.
Bottom Line?
Top End Energy’s Serpentine Project sets a promising foundation, but the path to commercial hydrogen production hinges on upcoming exploration and partner commitments.
Questions in the middle?
- Which development partners will join Top End Energy in advancing the Serpentine Project?
- How will upcoming drilling and geophysical surveys impact the resource confidence and estimates?
- What are the timelines and capital requirements for moving from exploration to production?
