Pulsar Helium Inc. (TSX-V: PLSR): Helium concentration of 13.8%
• The analysis of eleven samples from the Jetstream #1 well at Topaz by two different laboratories revealed helium content of up to 13.8%, specifically from a sample obtained at 1,801ft in-hole depth.• Because of the clear presence of small amounts of atmospheric air contamination in the samples, a third party expert from the Woods Hole Oceanographic Institution concluded that 13.8% helium should be considered as representing a minimum concentration estimate .
• The analysis demonstrates an increase from the previous estimates from measurements on site of up to 12.4% helium concentration.
• As we incorporate the higher helium concentration (we previously assumed 10.5%) and higher helium sale prices, we have increased our target price from C$1.20 per share to C$1.80 per share based on our new ReNAV.
• Our unrisked NAV for the 0.26 bcf of contingent resources of helium at Topaz is C$2.37 per share.
Valuation
We now assume 13.8% helium concentration and US$650/mcf for helium price. Our unrisked NAV for the company based on a 5 mmcf/d (gross gas) development is ~C$2.20 per share. Assuming 10 mmcf/d would increase our unrisked NAV to ~C$4.55 per share. Our ReNAV is ~C$1.80 per share. The recently acquired passive seismic suggests a potentially much larger prize. 0.3-1.0 bcf of additional resources could add C$2.75-9.20 per share (unrisked).
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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