Pulsar Helium Inc. (TSX-V: PLSR): Wireline logging results suggest productive permeable zones at high impact helium well
• The interpretation of the wireline logs at the Jetstream #1 well at the Topaz helium project suggests a predominantly gas saturated interval between 1,650-2,200 feet containing discrete zones with productive permeability.• Drilling observations and log data interpretation suggest the presence of permeable zones in the form of fracture and/or vuggy porosity. Good permeability is very important for flow rate. Fractures typically have very high permeability.
• The saturation and the nature of the porous system are uncertain as not all the desired wireline data could be acquired due to the lack of fluid level in the borehole. All logging was conducted in a gas filled borehole instead of liquid. As a result, some of the measurements could lack reliability.
• Additional logs are planned to further assess reservoir characteristics and the porosity types prior to the well testing program. Pulsar is also having additional lab analysis performed on the drill cuttings and the LOD-6 (2011 discovery well) drill core.
• Ahead of the well testing expected to start when the spring road restrictions are lifted, we re-iterate our target price of C$1.80 per share.
Valuation
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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