Pulsar Helium Inc (TSXV:PLSR) & (OTCQB:PSRHF), the helium development company, has announced that it has increased its net land position by c.100% at the Topaz Helium Project in the State of Minnesota, USA. This expansion follows the successful drilling of the Jetstream #1 well and the release of an independent resource report that underscores the Topaz Project’s existing resource with high helium concentration and upside potential. The Company is also pursuing additional acreage to secure district-wide control of what it believes to be a newly emerging helium reservoir that is regional in scale.
HIGHLIGHTS
- A c.100% increase in land position expands the Company’s interest in Topaz Project from 2,089 to 4,181 net acres.
- The terms state that after the initial 5-year lease extension, any developed tract can be extended further as long as Topaz continues producing gas.
- Pulsar is also pursuing additional acreage through the newly legislated State leasing process.
Thomas Abraham-James, President & CEO of Pulsar Helium, commented: “Based on existing data demonstrating the continuity of the system, along with the Sproule resource report, which highlighted the helium resource of one prospect in the area, we believe the Topaz Project has district size scalability. Accordingly, as part of our growth strategy, we are actively securing key land positions. Following this option exercise, we are pleased to have almost doubled our net acreage and are now targeting additional land acquisitions, guided by well-defined geological insights.”
“These are exciting times for Pulsar, especially at the Topaz Project, where our next steps include deepening the Jetstream #1 well, which we believe will positively influence our resource update, then assessing drilling step-out wells, and the completion of additional seismic studies. These efforts will enhance our understanding of this dual-commodity project, which benefits from strong domestic demand for both helium and CO2. I look forward to regularly updating shareholders as we execute our project plan and continue to build value for all stakeholders.”
DETAILS
Following the successful drilling and testing of the Jetstream #1 well, Sproule International Limited (“Sproule”) completed an independent resource update for the Topaz Project confirming the presence of commercial concentrations of both helium and CO2, with no significant environmental or logistical barriers to commercialization. Coupled with data from multiple geophysical, geological, and seismic studies, the Company is confident in the Topaz Project’s district-scale potential. As a result, the Board is actively expanding its land holdings to capitalize on this opportunity.
The initial expansion of the land package is through the exercise of its exclusive option with a private mineral right holder over 2,092 net acres for USD$313,800 or USD$150 per acre. The primary term for this land package is 5 years for undeveloped land, which is extendable for the term of production and carries a 20% royalty. The Company already has 2,089 net acres leased with private mineral right holders within the Topaz Project area.
In addition to the option exercise, the Company is in discussion with the State of Minnesota (the “State”) to increase the Company’s acreage in the Topaz Project area. New legislation was passed in May 2024 that allows the State to lease mineral rights for helium for the first time. The Minnesota Department for Natural Resources and the Department of Iron Range Resources & Rehabilitation recently visited the Topaz Project and underlined their enthusiasm for its advancement, which is recognised as having a positive economic impact to the local and regional area. Furthermore, the support for resource development within the State has been emphasised by the recently passed legislation.
Pulsar Helium’s land acquisition programme is running in tandem with plans to accelerate the development of the Topaz Project, which entails the deepening of the Jetstream #1 well, drilling step out wells and acquiring additional seismic surveys to further ascertain the true scale of the project. Sproule’s recently completed Prospective resource statement (refer to the Company’s announcement of August 21, 2024) estimated 2.8 Bcf Helium (P10) and 21.3 Bcf CO2 (P10) gross gas recoverable prior to the planned deepening of the Jetstream #1 well by a further c.500m seeking to intersect the full anticipated height of the reservoir.
