Pulsar Helium Inc. (TSX-V: PLSR): 2D seismic confirms resources and highlights deeper helium potential
• The initial 1.1 km 2D seismic sweep survey shows a seismic reflector at the same depth where gas was intersected at the Jetstream #1 well. This is important as it supports the contingent resources estimated in the Competent Persons Report published at the time of the IPO. These resources had been estimated with limited reservoir and seismic data.• Further reflectors were observed at depth, suggesting the presence of additional gas that had not been incorporated in the resources estimates.
• The 1.1 km 2D seismic will help with future seismic survey design.
• A further 20.4 km long 2D seismic line will commence in July that will help define the size of the prize. The line will be located ~150 m to the south of the 1.1 km line.
• A new resources report is expected to be published in late July. The results of the 20.4 km 2D seismic line will not be available in time to be incorporated into the updated resource report.
• We re-iterate our target price of C$1.80 per share.
• We view the recent share price drop as an opportunity.
Valuation
Our unrisked NAV for the company based on a 5 mmcf/d (gross gas) development remains >C$2.00 per share. The upside case including additional resources leads to an overall unrisked NAV of ~C$4.15 per share.
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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