Critical Mass Achieved: Top End Energy's Hydrogen Plan Advances
With 30,000 acres secured adjacent to recent high-grade hydrogen discoveries, TEE is now shifting to execution mode in one of the world’s most promising hydrogen basins
Top End Energy (ASX: TEE) has crossed the 30,000-acre mark at its Serpentine Natural Hydrogen Project in Kansas, shifting the company’s focus from land acquisition to execution.
For readers who have been following this story, you'll know this is a key milestone we've flagged for months.
With a 7.6c share price and $20 million valuation, TEE is the cheapest player in a proven natural hydrogen region, trading well below what its close neighbours are worth.
Natural hydrogen has quickly gone from scientific oddity to serious energy frontier, and TEE's strategic land grab has put them at the heart of the action.
The 30,000 acres now gives TEE:
A launchpad for drilling.
Strategic positioning surrounded by billion-dollar players.
A foundation to attract energy majors as development partners
And we had a quick chat with CEO Luke Velterop to fill us in on the update:
Critical Mass in the Best Region
TEE's strategy has paid off. They've built a substantial land position in one of the world's most promising hydrogen corridors, nestled between Koloma (with backing from Bill Gates and Jeff Bezos) and fellow ASX-listed HyTerra (ASX: HYT).
With significant acreage now secured in the Kansas heartland, TEE is moving forward on multiple fronts:
Pre-drilling assessments across the acreage.
Bringing in specialist personnel.
Finalising drill locations
Permitting is in motion.
And crucially, discussions with potential development partners have begun.
These steps represent real progress toward the main event: drilling in 2025.
HyTerra Results: 96.1% Hydrogen Next Door
Just days before Top End Energy reached its 30,000-acre target, neighbouring HyTerra announced remarkable hydrogen results from its Sue Duroche 3 well, measuring up to 96.1% pure hydrogen.
That result is significant on two fronts:
It demonstrates that Kansas' natural hydrogen system works. The rift structure that underpins the region, which TEE's acreage overlays, is generating hydrogen.
It de-risks the broader play for neighbouring landholders, including TEE. It suggests this isn't a one-off anomaly but part of a regional system.
TEE's infill strategy was deliberate, targeting leases adjacent to Koloma's ground and surrounding HyTerra's early wells.
The region has drawn serious capital from Gates, Bezos, and HyTerra-backer Twiggy Forrest. These heavyweights don't often end up neighbours in the same postcode by accident.
With this prime acreage now secured, TEE sits right in the middle of what's shaping up as America's most promising hydrogen corridor.
$20 Million Price Tag in a Billion-Dollar Playground
The valuation contrast in Kansas' hydrogen corridor really stands out. Koloma has raised north of US$400 million and surrounds TEE's position.
HyTerra, fresh off that cracking 96.1% hydrogen hit we mentioned earlier, also trades at a substantial premium.
And then there's TEE, sitting quietly with its $20 million market cap despite holding prime acreage between and all around these heavyweights.
What makes this particularly interesting for us is that TEE hasn't just picked up scattered bits of land, they've assembled the second-largest connected land package in the region. Only Koloma holds more continuous acreage.
Top End Energy has managed to build this substantial position while keeping its valuation modest, creating significant headroom for a rerating as it moves toward drilling in 2025.
That's precisely the sort of asymmetric opportunity we look for in the small-cap space.
The Path Forward
With 30,000 acres in the bag, TEE's turning its attention to the actual business of finding hydrogen.
Here's what's on the cards:
Drill permitting and site selection: Work is underway to finalise drill locations and file the necessary permits.
Partnership and funding: TEE has begun conversations with potential development partners. Energy majors or strategic funds will be watching closely, particularly given Koloma's valuation.
Drilling: Targeted for 2025, this represents the most significant catalyst for TEE. First wells are always make-or-break moments for small caps like TEE. One decent hit and the share price narrative changes completely.
The company's playing it smart with methodical land acquisition first, then proper preparation before drilling.
The Koloma effect
Koloma is the pace-setter for Kansas hydrogen development.
Their deep pockets have drawn the media spotlight, government attention, and a steady flow of investment capital into the region.
It piqued our interest when we saw Koloma is recruiting for a senior commercial development manager, a role focused on building domestic and international partnerships in natural hydrogen.
Koloma plays their cards close to the chest, but their hiring moves reveal plenty about their intentions.
Private companies don't typically invest in partnership development unless they've got something worthwhile to partner on.
While Koloma remains tight-lipped about their actual discoveries, their staffing decisions suggest they're gearing up for commercial-scale operations.
In the resources sector, corporate development tends to follow a predictable pattern. Early-stage companies focus on technical hires, mid-stage on operational roles, and commercial partnership positions typically appear when a resource is proven and ready for development partnerships.
Koloma clearly sees enough potential in their Kansas acreage to begin building a commercial team, which is a strong vote of confidence in the broader regional play where TEE has established a foothold.
Final thoughts
TEE has methodically built its position in Kansas while the spotlight has been on its bigger, louder neighbours. This quiet accumulation strategy has created something genuinely valuable - significant acreage in one of the world's most promising hydrogen regions without the premium valuation.
The company has now shifted its focus from land acquisition to the next phase of development. With 30,000 acres secured in this highly competitive region, TEE is working to advance the project through permitting, partnerships, and preparation for drilling activities.
At $20 million, TEE offers substantial leverage to Kansas hydrogen success without the hefty price tag that comes with later-stage entry. This is precisely when we like to invest - after the concept is proven by neighbours but before the company has fully demonstrated its own potential.
No investment comes without risk, but with a $20 million market cap, 30,000 acres in a proven rift system, neighbours like Koloma and HyTerra, and drilling preparations advancing, it's all falling into place.
And with each positive development from neighbouring operators, the investment thesis strengthens.
That's why we've been building our stake as the Kansas hydrogen story unfolds.
Don't forget the tenements in the NT Beetaloo basin, and it neighbours progress.