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Tapping into a hot thematic, Top End Energy (ASX:TEE) has flagged its listing of ADRs on the U.S. OTC markets in a bid to tap American-scale liquidity, but heading into lunchtime Thursday, reactions have been milquetoast at best.
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Worth clarifying here is Top End Energy are not based in the Northern Territory but instead running hard with their Serpentine project, which is in the U.S.
On its website, the company boasts proximity to tenure held by a Fortescue-linked entity as well as other large U.S. names in hydrogen gas – that same gas which can’t be ported in traditional oil and gas pipelines.
At any rate, there’s also the implicit possibility that the company could hit natural gas instead of natural hydrogen (that rare form of hydrogen which occurs naturally over geological time), which could also offer the company a windfall.
At the same time, it’s listed on the U.S. OTC markets, the company has pivoted to the U.S. with its mission, per its release on Thursday, to align itself with ‘the West’s’ need for domestic energy supply security.
That’s a great line right now to use if you’re a company proposing to mine REEs, especially after Washington bought into MP Materials (something I’ve been writing about a lot lately – and antimony, of course, remains hot, in the absence of anything better). But for what is ostensibly an oil and gas company, that mightn’t be so compelling for investors.
A large part of that might be because the U.S. absolutely does not need oil and gas security – it’s already a major global producer and one needn’t be reminded of the nodding donkeys synonymous with Texas and Oklahoma – and another might be because hydrogen is, really, a threat to oil and gas dominance; as long as you’re willing to pretend it wouldn’t take a century to build the infrastructure needed to replace O&G with hydrogen.
Still, you can’t blame the company for trying in the current market. “[This move supports us] as a U.S. energy project developer, the Company is aligned with President Trump’s Unleashing American Energy Executive Order and its directive to maximise domestic production, TEE wrote on Thursday. The U.S. is currently producing more oil and gas than it ever has before.
TEE last traded at 4.7cps.
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