Top End Energy (ASX:TEE) has reported a net loss after tax of $12,084,860 for the financial year ended 30 June 2026, compared with $5,160,427 for the prior year, with the current year result including an impairment of $8,366,562 on capitalised exploration and evaluation expenditure relating to the Serpentine project, according to the company's annual report filing.

Key Points

  • Net loss after tax of $12,084,860 for the year ended 30 June 2026, up from $5,160,427 in the prior year
  • Impairment of $8,366,562 recorded against the Serpentine natural hydrogen project in Kansas, USA
  • Company surrendered EP154 and submitted an application to surrender EP153, concentrating resources on EP144 in the Northern Territory
  • Post year end, a six-month suspension and extension of EP144 was applied for, taking Year 4 through to 20 June 2027
  • A maiden independent Prospective Hydrogen Resource estimate of 304 BCF (mean) was announced for the Serpentine Project on 2 July 2025

Annual Financial Result and Impairment Charge

Top End Energy recorded a net loss after income tax of $12,084,860 for the year ended 30 June 2026, compared with a loss of $5,160,427 for the year ended 30 June 2025. The company disclosed that the current year loss includes an impairment of capitalised exploration and evaluation expenditure of $8,366,562 relating to the Serpentine natural hydrogen project in Kansas, USA. The company's principal activities encompass the acquisition, exploration and development of oil, gas and other potentially marketable product streams, including helium and hydrogen, with interests held in Australia and the United States.

Beetaloo and South Nicholson Basin Permit Activity

During the year, Top End Energy continued to pursue a targeted farm-out process for its 100%-owned Beetaloo and South Nicholson Basin permits in the Northern Territory. The company progressed the Environmental Management Plan for EP144 and EP153, covering environmental protection, land access, stakeholder engagement and risk management. Following a portfolio prospectivity review, the company decided to surrender EP154 during the year and subsequently submitted an application to surrender EP153. Post year end, the company applied for a further six-month suspension and extension of EP144, taking Year 4 through to 20 June 2027, with Year 5 proposed to run from 21 June 2027 to 20 June 2028. The application is subject to approval by the Minister's delegate.

Serpentine Natural Hydrogen Project Resource Estimate and Farm-Out

On 2 July 2025, Top End Energy announced a maiden independent Prospective Hydrogen Resource estimate for the Serpentine Project in Kansas, USA, of 304 BCF (mean), with a range of 71 BCF (low estimate) to 629 BCF (high estimate). The assessment was completed by Teof Rodrigues & Associates. The Prospective Resource estimates are quoted on an unrisked basis and are aggregated arithmetically by category. On 14 July 2025, the company announced its Serpentine Project Farm-Out Presentation and commenced a structured farm-out process with multiple counterparties, including prominent US operators, who were provided access to the project's technical data and exploration roadmap.