Pulsar Helium Inc. (TSX-V: PLSR): Wireline logging results suggest productive permeable zones at high impact helium well

• The Jetstream # 1 appraisal well has been tested at a rate of up to 0.8 mmcf/d with helium concentration of 8.7%-14.5%.
• The flow rate initially reached 0.15 mmcf/d with flowing tubing head pressure of 34 psi. The bottom hole pressure was 162 psi.
• A compressor was then installed at the well head to reduce the flowing tubing head pressure to 20 psi, thereby increasing the difference between the flowing pressure and the reservoir pressure. The greater pressure differential resulted in the flow rate increasing to ~0.8 mmcf/d.
• The compressor used during the operation was not sufficient to further reduce the well head pressure (the target was to reach less than 10 psi). Further compression should result in an even higher flow rate (noting that the reduction in well head pressure from 34 psi to 20 psi had already resulted in a flow rate increase of ~0.65 mmcf/d).
• The flow rate was further constrained by the presence of drilling fluid in the well.
• Assuming a flow rate of 0.75 mmcf/d and a helium concentration of 12.5% suggests the well could generate revenue of ~US$22 mm (@US$650/mcf for helium) during the first year of production (with no decline). This suggests the economics of the project remain very strong given that a development well should cost C$2.00 per share. The upside case including additional resources leads to an overall unrisked NAV of ~C$4.15 per share.