Special Situation Alert - December 8, 2024

Top End Energy (TEE.ASX) announced it has entered into a binding conditional share purchase agreement to acquire 100% of Serpentine Energy and its 100% owned and operated natural hydrogen project in Kansas. The project is located in the heart of what the company describes as an active land rush, fuelled by historical observations of natural hydrogen and a surge in recent exploration activity, including seismic surveys, drill site permitting, drilling and testing operations. In parallel with the acquisition, the company has raised A$6 million at A$0.10 through a placement. Funds will be deployed to expand the project's lease holdings, ahead of drilling programs being planned by multiple explorers, as well as geological evaluation for the company’s own drilling program in H2 2025. Serpentine has executed more than 100 leases with private landowners totalling approximately 20,000 acres across Marshall, Washington and Riley counties. Northeastern Kansas is a focal point of evaluation due to the combination of geological factors required for the generation, migration and preservation of natural hydrogen. The Nemaha Uplift is the culmination point for the migration of hydrogen gas.

Seascape Energy Asia (SEA.L 8YG.F) announced a £2 million fundraising at 35p following on from the conditional farm-out of a 42.5% participating interest in the Block 2A Production Sharing Contract to INPEX. Block 2A contains the giant Kertang prospect, which is believed to be one of the largest undrilled structures in Malaysia. The CPR undertaken in June 2024 assigned total gross unrisked mean prospective resources of 1.7 billion barrels of oil equivalent across four target horizons. Seascape will receive an uncapped carry for its 10% retained interest through the remaining exploration phase including one firm wildcat well and one contingent appraisal well (subject to a commercial discovery), plus $10 million cash payable in full at completion of the Block 2A farmout, a $10 million contingent cash consideration to be paid following confirmation of a commercial discovery and reimbursement of certain historic costs totalling approximately $0.5 million.

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Power Nickel (PNPN.V PNPNF IVV.F) announced that the shareholders have approved the plan of arrangement pursuant to which the company's interest in the Golden Ivan property, along with certain Chilean exploration assets and liabilities, will be spun out to Power Nickel shareholders through the shareholders receiving common shares in Chilean Metals, a wholly owned subsidiary of the company. In addition, the company obtained a final order from the Supreme Court of British Columbia which was a condition to enable closing of the arrangement. The spin-out will provide investors with an ownership stake in two separate specialized companies. Power Nickel will continue to focus on the advancement of the Nisk project, while Spinco will focus on advancing the Golden Ivan property and the Chilean assets. Additionally, the company believes the spin-out will pose challenges to the naked short sellers that it claims have been selling its shares and not closing their share sales by delivery of the stock. Power Nickel says it has been investigating and finding evidence of significant and ongoing stock imbalances, which occur when a broker has fewer shares in its account than its customers own.

Pantheon Resources (PANR.L PTHRF P3K.F) noted the announcement made by Alaska Gasline Development Corporation stating that the Alaska Industrial Development and Export Authority has approved a resolution to negotiate a letter of credit with the Alaska Gasline Development Corporation to backstop the costs of front end engineering and design on Alaska LNG Phase 1, the in-state pipeline portion of Alaska LNG. The importance for Pantheon is that the resolution is a key step to securing private investment in the project and moving to a final investment decision. Pantheon and Alaska Gasline Development Corporation signed a gas sales precedent agreement in June 2024 which includes, among other conditions, a requirement for the Alaska LNG project to reach final investment decision. The value of a take or pay contract under a gas sales agreement based on the terms of the gas sales precedent agreement, if finalised, could potentially allow Pantheon to secure funds required to cover capital costs from the point of Ahpun first investment decision to cash-flow self-sufficiency.

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