Pulsar Helium Inc. (TSX-V: PLSR): Positive implications from passive seismic results
• The processing of the passive seismic survey at the Topaz project matches very precisely what was encountered by the LOD-6 well. This is very encouraging as it confirms the company’s interpretations of the trapping mechanism of the reservoir and its geometry.• In our view, this reduces the geological risk associated with the discovery.
• A significant and distinct shear wave velocity anomaly (velocity decrease) has been identified at the same depth (542 metres) where gas containing 10.5% helium was encountered in the LOD-6 discovery well.
• The velocity anomaly persists to a depth of ~1,150 m, suggesting a vertical thickness of ~600 m. To the northeast, the vertical thickness increases to 1 km. It covers a continuous area of 7 km2, suggesting a very large potential reservoir with positive implications for volumes.
• Another connected area of velocity decrease dips and broadens to the west, suggesting that the play extends regionally further with positive implications for the running room of the project.
• Importantly, a larger proportion of the area of interest identified by the passive seismic is located within the lands under Pulsar’s existing licence.
• We continue to estimate the unrisked NAV of 100 mmcf of helium at ~C$0.65 per share.
• We re-iterate our target price of C$0.90 per share.
Cashflow
Assuming US$15 mm development capex (helium sold in gaseous form) and first gas in 2H24, net cash is forecast 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.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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