Pulsar Helium Inc. (TSX-V: PLSR): Gearing up for drilling
• Pulsar has signed a drilling contract to deepen the Jetstream #1 well later this quarter. A further 500 m will be drilled to intersect the full anticipated height of the reservoir. The prospective resources at Topaz are associated with these deeper horizons.• The well is then expected to be tested around the end of 2024.
• The drilling contract includes the option to drill an additional two wells and Pulsar could drill a step-out well in 1Q25 to firm-up the resources.
• A FEED study will then be undertaken to size the development of the discovery that could start shortly thereafter.
• Our unrisked NAV for the prospective helium is C$3.42 per share plus C$1.54 for the CO2 resources (Pmean in both cases).
• Pulsar has also doubled its land position by exercising its option to acquire 2,092 net acres for US$0.3 mm. The seller will also receive a 20% royalty.
• This new land position provides Pulsar with further prospectivity beyond the area covered by the recent competent person report (CPR). The 1.3 bcf prospective resources estimated in the CPR are only associated with the proportion of the identified structure on adjacent State lands over which Pulsar is in discussions to secure access.
• We re-iterate our target price of C$1.90 per share.
Valuation
We have assumed that the new equity associated with the IPO on AIM is raised at the current share price. Our unrisked NAV for the company is ~C$5.15/sh with a ReNAV of ~C$1.80/sh. This assumes that Pulsar has access to the proportion of the resources on State lands.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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