Top End Energy enters Kansas hydrogen hunt with Serpentine project acquisition
Australian junior Top End Energy (ASX: TEE) is set to join the international hunt for high-value “white” hydrogen in the US state of Kansas.
The company has entered into a binding conditional share purchase agreement to acquire private Australian company Serpentine Energy and its 100%-owned and operated natural hydrogen project.
Best known for its oil and gas exploration activities in the Northern Territory and Queensland, Top End joins HyTerra (ASX: HYT) in Kansas, the centre of global natural hydrogen excitement.
Capital raising
Top End has successfully raised $6 million to support the acquisition through a well-supported placement to existing and new sophisticated investors.
The company will use the funds to expand the newly acquired project’s lease holdings and conduct geological evaluation for the company’s drilling program planned in 2H 2025.
The Serpentine project currently comprises more than 100 leases with private landowners, totalling approximately 20,000 acres across Kansas.
Serpentine holds the exclusive right to explore and produce all gases, including hydrogen and helium, in the entirety of the holding.
HyTerra focus
Kansas is also the focus for HyTerra, which is preparing for a strong finish to 2024 in its hunt for white hydrogen.
With Andrew Forrest’s Fortescue (ASX: FMG) set to inject $21.9m in funding, HyTerra is preparing to accelerate drilling at its large Kansas exploration position.
The key focus for HyTerra is its Nemaha project, where historic drilling has identified natural hydrogen and helium potential.
Like Nemaha, the Serpentine project is ideally located with nearby access to rail, road and gas pipelines.
This will help support the efficient delivery of hydrogen feedstock to downstream customers and the potential future production of clean ammonia to meet growing midwestern demand.
Founder retained
Top End has retained the services of Serpentine founder Luke Velterop as vice president of US operations.
He will be US-based and responsible for all aspects of driving the development of the project and Serpentine’s US hydrogen operations generally.
“I’m thrilled to join forces with TEE to build a successful and impactful clean energy business,” Mr Velterop said.
“Our Serpentine project delivers a strategic foothold in one of the world’s most competitive and fast-moving plays for natural hydrogen.”
“This sector is capturing the attention of major energy players as an opportunity to discover and unlock the first new primary source of energy in nearly a century.”