Top End Energy (ASX:TEE) has expanded its lease holdings by 25% at the Serpentine Natural Hydrogen Project in Kansas, USA, according to a Tuesday filing with the Australian bourse.

The move significantly strengthens the company's position amid a competitive leasing environment, the filing said.

The newly secured leases are adjacent to existing Top End Energy's existing holdings, the filing added.

The expansion comes as the company progresses with its pre-drill scope, including technical appointments, geological assessments, and well site selection, the company said.

TEE is targeting 30,000 acres by the fiscal second quarter to meet its exploration and development goals, the company said.

Shares of the company rose 5% at market close.