Top End Energy (ASX:TEE) has disclosed that it will not proceed with a proposed transaction involving the development of a powered land and powered shell business for AI data centres in the United States of America, following an unfavourable in-principle response from ASX, while its securities remain suspended pending the disposal of an approximately 18% equity interest in PowerPlay AI Pty Ltd.

Key Points

  • Top End Energy received an unfavourable response from ASX to its in-principle advice application regarding the proposed AI data centre transaction and determined not to proceed.
  • The company holds a passive, non-contributory undiluted equity interest of approximately 18% in PowerPlay AI Pty Ltd, with no ongoing obligations to or involvement in the entity.
  • ASX has stated that completion of the disposal of the company's interest in PowerPlay is a condition to reinstatement of its shares to official quotation.
  • The company has applied to surrender EP 153 and applied for a further six-month suspension and extension of EP 144, targeting early 2027 dry season for airborne gravity survey acquisition.

Corporate Suspension and PowerPlay AI Equity Interest

Top End Energy's securities have been suspended since its request for voluntary suspension dated 27 March 2026. The company had sought ASX in-principle advice on its suitability for re-admission in connection with a proposed transaction under Listing Rule 11.1, which involved commencing a new business venture in AI data centres in the United States of America. After receiving an unfavourable response from ASX and determining not to proceed, the company subsequently received approaches from other parties regarding the underlying business opportunity, leading to the establishment of PowerPlay AI Pty Ltd. The company's approximately 18% interest in PowerPlay is recognised in consideration of costs incurred in relation to that opportunity.

Reinstatement Condition and PowerPlay Disposal

ASX has informed Top End Energy that one of the conditions to reinstatement of its shares to official quotation is the announcement of the completion of the disposal of its entire interest in PowerPlay, including the material terms of that disposal. The company stated there is no certainty as to when and on what terms any such disposal will occur, and consequently no certainty as to when such an announcement will be made. The company said it intends to dispose of all of its interest in PowerPlay and continue with exploration of its Beetaloo Project. Further updates will be provided in accordance with the company's continuous disclosure obligations under the Listing Rules.

EP 144 and EP 153 Permit Status in Northern Territory

The Northern Territory Minister's delegate has granted Instruments of Suspension and Extension over EP 144 and EP 153, with Permit Year 5 running from 21 December 2026 to 20 December 2027 with unchanged work program requirements. Top End Energy has applied to surrender EP 153, which was primarily a natural hydrogen and helium play, to concentrate resources on EP 144. The company has also applied for a further six-month suspension and extension of EP 144, extending Year 4 to 20 June 2027, with an associated work program variation focused on defining the permit's depocentre and calibrating the geological model. EP 144's Year 4 indicative expenditure and Year 5 commitment to plan and drill one vertical exploration well remain unchanged.