TEE close to completing acquisition from Hancock subsidiary
Top End Energy (ASX: TEE) just received government approval for the acquisition of ground from the wholly owned subsidiaries of Gina Rinehart’s Hancock Prospecting.
Government approvals mean the transaction is now closer to being completed.
Once completed it would mean TEE pick up ~27,885km^2 of acreage from Hancock in and around its existing assets in the Northern Territory.
Context on the deal:
We covered the deal in detail back in February when the deal was first announced.
In that note we laid out the following:
- Why we think the deal is a big step forward for TEE…
- How the acquisition fits into TEE’s NT exploration strategy
- The helium/hydrogen optionality
To see the note in full check out the following:
(Source)
What’s next for TEE?
Geophysical Surveys on EP 258 (Newly granted ground in the NT) 🔄
TEE was recently granted the first EP in the NT in ~10 years.
Next on that permit, we want to see TEE get on the ground and run geophysical surveys.
TEE’s plan is to run a ~2,500 line kilometre airborne gravity survey AND at the same time look at whether the project has hydrogen/helium potential.
Complete the acquisition of the Hancock Energy assets 🔄
With the government approvals out of the way, we want to see the deal get completed.
Farm-down QLD gas project 🔄
TEE has previously said it’s plan for the QLD asset is to “Initiate a farm-down process for ATP 1069 with the aim of securing a joint venture partner”.
As a result, we are looking for some sort of farm-out deal as the next major catalyst for that project.
