• Top End Energy ups its Kansas acreage by 25% to 25,000ac
  • Neighbouring Koloma raised massive cash to advance its own exploration program
  • Company eyeing continued expansion and critical mass for exploration and development

 

Special Report: Top End Energy has upped its stake in the high-yielding hydrogen lands of Kansas amid a land rush into the Sunflower State.

Top End Energy (ASX:TEE) now holds the exclusive right to explore and produce hydrogen and helium from 25,000 acres after securing a 25% increase to its Serpentine project’s lease holdings.

Privately held Koloma raised a massive US$400m in funding to explore its own acreage in the state but has remained tight-lipped since announcing they had found significant concentrations of hydrogen in one of their wells.

What is known from Koloma is that the wells drilled this year will be for production, and Top End Energy has observed rising excitement and landowners fielding multiple offers to lease.

Top End believed more territory would mean a stronger position, and Vice President of US Operations Luke Velterop said he was very pleased to report the rapid expansion of its Kansas domain.

“This is a great result by our team, given the competitive landscape being driven by Koloma and a growing number of multi-national oil and gas explorers now entering the natural hydrogen sector,” Velterop said.

“Our commitment to ‘quality over quantity’ remains and we will continue to lease prospective acreage that aligns with this standard. 

“We look forward to providing further updates as we advance our leasing and operational goals in the US.”

The company is eyeing off another 5000 acres in the second quarter, believing it is quickly closing in on the critical mass required for exploration and development.

It will also advance its pre-drill activities with technical appointments, geological assessments, operational filings and selection of well sites.

 

High on hydrogen

The Serpentinisation of gabbro rocks has been proposed as being responsible for a phenomenon of natural hydrogen generation in Kansas, with TEE’s project name a nod to that prospectivity.

Rocks within the billion-year-old Midcontinent Rift lying beneath Kansas can produce hydrogen when exposed to water, pressure and heat, and while commerciality is a relative unknown, the money being attracted is very real.

Koloma has billionaire investors like Jeff Bezos and Bill Gates in its tightly-held register, while Andrew Forrest’s Fortescue made its own investment into fellow Australian-listed explorer HyTerra (ASX:HYT).

The promise is a step change for the energy industry as a huge source of cheap, green power.

And though the Trump Administration has made its threats to remove a tax credit dedicated to hydrogen as a domestic fuel source, both renewable and oil & gas companies are pushing to keep it.

While a far cry from the fortune raised by Koloma, TEE investors gave strong backing with a $6m raising to support the ‘transformative’ Kansas acquisition in December, and the company believes it could represent a significant discount to its peers as the land rush continues.

Those investors include local landowners, who are being brought into the fold as TEE prioritises community engagement and local hiring to hit the ground running in a competitive leasing environment.

 

 

This article was developed in collaboration with Top End Energy, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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