Pulsar Helium Inc. (TSX-V: PLSR): Raising new equity and starting trading on AIM
• Pulsar has raised £5 mm of new equity at a price of £0.25 per share. The company starts trading on AIM today.• The company’s key asset is the Topaz project in Minnesota where the company has discovered a structure holding ~1.4 bcf contingent plus prospective resources (Pmean) of high concentration helium. The structure is also estimated to hold prospective CO2 resources of 10.7 bcf (Pmean).
• The Jetstream #1 flowed at a rate of up to 0.8 mmcf/d with helium concentrations of 8.7-14.5% on test. The flow rate was constrained by the compressor used during the operation not being sufficient to further reduce the well head pressure.
• The new funding will allow the well to be deepened and further tested to derisk some of the prospective resources before the end of the year.
• A step-out well could also be drilled in 1Q25 to firm-up the resources.
• A FEED study will then be undertaken to size the development of the discovery that could start shortly thereafter.
• Our unrisked NAV for the contingent plus prospective helium is £1.88 per share plus £0.80 for the CO2 resources (Pmean in both cases).
• A recently acquired land position provides Pulsar with further prospectivity beyond the area covered by the recent competent person report (CPR). The 1.3 bcf prospective resources estimated in the CPR include the proportion of the identified structure on adjacent State lands over which Pulsar is in discussions to secure access.
• As we incorporate the impact of the financing and the new share and warrants count, we have changed our target price to £0.90 per share.
Economics
Assuming a flow rate of 0.75 mmcf/d and a helium concentration of 12.5% suggests the Jetstream#1 well could generate revenue of ~US$22 mm (@US$650/mcf for helium) during the first year of production (with no decline). This indicates very strong project economics given that a development well should cost
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.