Pulsar Helium Inc. (TSX-V: PLSR): Additional equity provides funding for key well test and additional drilling
• Pulsar Helium is raising C$4.255 mm of new equity through a placement of 18.5 mm new unit at a price of C$0.23 per unit. Each unit consists of one share and one warrant with a strike price of C$0.36 per share. The warrants have a duration of 24 months.• The proceeds of the raise will allow the company to fund the well test of the high impact Jetstream#1 appraisal well scheduled to spud in February at the Topaz project in Minnesota.
• Jetstream#1 will twin the LOD-6 discovery well that encountered a helium-rich gas flow but could not be tested at the time.
• We have changed our target price to C$0.80 per share as we incorporate the dilution associated with the new equity raise. Our unrisked NAV for the 0.26 bcf of contingent resources of helium at Topaz is C$1.57 per share. The recently acquired passive seismic suggests a potentially much larger prize. 0.3-1.0 bcf of additional resources could add C$1.60-5.25 per share (unrisked).
Cashflow
We continue to assume US$15 mm development capex (helium sold in gaseous form) but are now expecting first gas in 2025 rather than 2H24. We continue to forecast net cash to be >2x the current market cap by YE25.
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.
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