TEE completes acquisition from Hancock subsidiary
Top End Energy (ASX: TEE) just completed the acquisition of ground from the wholly owned subsidiaries of Gina Rinehart’s Hancock Prospecting.
Its been a while since the transaction was announced (27th of February) so its good to see it get done today.
The deal see’s TEE pick up ~27,885km^2 of acreage from Hancock in and around its existing assets in the Northern Territory.
Today’s news comes a few weeks after TEE was granted the first NEW gas permit in the NT in the last 10 years.
With the acquisition done and EP 258 granted, TEE can start doing all the grunt work to firm up gas, hydrogen and helium targets.
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)
How today’s news relates to our TEE Investment Memo:
One of the key reasons we Invested in TEE was because the company listed on the ASX with a mandate to pick up new projects that are not exclusively gas exploration assets.
With today’s acquisition TEE is adding ground that is prospective for both helium and hydrogen… not just gas.
Mandated to acquire new projects
TEE is mandated to explore acquisition opportunities ranging from helium, carbon capture assets, all the way through to hydrogen and ammonia projects. This gives TEE optionality to bring in new projects in a space where there is minimal ASX listed exposure.
Source: “Reasons We Invested” Section - TEE Investment Memo 06 May 2022
What’s next for TEE?
- Geophysical Surveys on EP 258 (Newly granted ground in the NT) 🔄
- Farm-down QLD gas project 🔄
