Pulsar Helium Inc. (TSX-V: PLSR): Very high flow rate at Jetstream #1. £3.7 mm equity raise to drill up to 10 wells
• Jetstream #1 recorded a peak flow rate exceeding 1.3 mmcf/d of raw gas during a compression-assisted test, with no formation water encountered. This represents a ~2.5-fold increase over the flow rate achieved without compression, and is approximately 60–65% higher than the rate recorded during the April 2024 test under comparable conditions.• Jetstream #1 delivered a net helium peak flow rate of ~0.19 mmcf/d—among the highest reported by junior helium E&Ps in North America. This materially enhances the commercial value of the Topaz project. Even assuming a conservative raw gas rate of 0.5 mmcf/d per well, annualized helium revenues could exceed US$13 mm per well (based on US$500/mcf pricing and 14.5% helium concentration).
• Jetstream #2 exhibits higher wellhead pressure than Jetstream #1, though flow remains constrained by wellbore blockages currently under investigation.
• Pulsar has raised £3.7 mm of new equity priced at £0.23/sh to fund an extensive appraisal core drilling programme at the Topaz project, targeting FID. This is addition to the project financing facility of up to US$12.5 mm that has been offered by one of Pulsar’s largest shareholders. Additionally, US$1.5 mm remains undrawn under the company’s existing US$4 mm credit facility.
• With funding secured, we have moved the starting date of our DCF by one year to YE25. This offsets the dilution from the equity raise. We re-iterate our target price of £0.95/sh. Our unrisked NAV stands at £1.88/sh for helium.
Next steps
Pulsar plans to drill up to 10 appraisal wells to further define the size and shape of the helium-bearing reservoir. Each well is anticipated to reach a depth of up to ~3,937 feet and penetrate the entire helium reservoir. Drilling is slated to commence in September with step-out locations from Jetstream #1 and #2. This campaign is aimed at converting prospective resources into contingent resources, with potential upside linked to both lateral field extent and reservoir depth. Currently Pulsar holds only 0.08 bcf of 2C contingent resources of helium vs. 1.3 bcf of prospective resources. Achieving FID would enable Pulsar to book 2P reserves.
Valuation
Our unrisked NAV for Pulsar is now £2.59/sh with a ReNAV of £0.94/sh. This assumes that Pulsar has access to the proportion of the resources on State lands which it is in the process of securing.
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.
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