Pulsar Helium Inc. (LON:PLSR) has marked a major milestone by successfully raising £5 million in new equity, priced at £0.25 per share. With this boost, the company has officially commenced trading on the AIM market, a noteworthy step in its promising journey.
Pulsar’s key asset is the Topaz project, located in Minnesota. The project has already yielded impressive results, with a discovery that holds an estimated 1.4 billion cubic feet (bcf) of contingent and prospective helium resources. The company is also exploring the site’s potential CO2 resources, projected to be around 10.7 bcf.
Helium concentrations at the Topaz site are notably high, ranging between 8.7% and 14.5% from initial tests on the Jetstream #1 well, which has shown a flow rate of up to 0.8 million cubic feet per day (mmcf/d). Although this flow rate was limited due to constraints with the compressor equipment, it’s a strong indication of the potential lying beneath the surface.
Stephane Foucaud, an analyst at Auctus Advisors LLP, expressed his enthusiasm, noting: “The new funding will allow the well to be deepened and further tested to de-risk some of the prospective resources before the end of the year.” Foucaud’s insight highlights the company’s dedication to unlocking the full potential of its Topaz project.
With plans to drill a step-out well in the first quarter of 2025 and a Front-End Engineering Design (FEED) study to follow, Pulsar is clearly committed to fast-tracking the development of its Topaz discovery. The step-out well is intended to confirm the resources, providing further validation of the project’s value.
Auctus Advisors’ valuation for Pulsar paints an exciting picture. With an unrisked Net Asset Value (NAV) of £2.69 per share and a revised NAV (ReNAV) of £0.91, the company’s current share price of £0.25 offers considerable upside. Foucaud and the Auctus team have set a target price of £0.90 per share, emphasising the strong growth potential.
Beyond its current resources, Pulsar has recently acquired a new land position that expands its exploration opportunities. This land, situated adjacent to the identified structure in the Competent Person Report (CPR), holds additional promise. The prospective resources of 1.3 bcf outlined in the CPR could grow further if Pulsar secures access to the state lands nearby.
Economically, the project is also very attractive. Based on a flow rate of 0.75 mmcf/d and a helium concentration of 12.5%, the Jetstream #1 well could generate approximately US$22 million in revenue in its first year of production, assuming stable performance. With well development costs expected to remain below US$2 million, these numbers reflect a highly profitable operation.
Pulsar Helium Inc. is in an excellent position to deliver substantial value to its investors. The company’s Topaz project, coupled with its strong financial backing and expansion plans, provides significant opportunities for growth. As Pulsar continues to explore and develop its resources, the future looks bright. With a target share price of £0.90, the current valuation offers an exciting investment opportunity for those looking to capitalise on the helium sector’s potential.
