Pulsar Helium Inc. (TSX-V: PLSR): Very high flow rates at Jetstream #1 derisks Topaz development plan
• Following wellbore clean-up at Jetstream #1, Pulsar Helium achieved a peak natural flow rate of ~0.50 mmcf/d on a 38/64-inch choke at 30 psi wellhead pressure, without compression. This marks a more than 3x increase compared to the ~0.15 mmcf/d recorded under similar conditions in April 2024.• The well also demonstrated sustained flow rates of 0.15–0.30 mmcf/d over 12–18 hour intervals on smaller choke sizes, with no significant decline and rapid pressure recovery—indicative of strong reservoir performance. No water was produced.
• The improved performance is attributed to the contribution from deeper zones, following a 2,900-foot deepening of the well since the initial test. This may positively impact helium resources estimates.
• Pulsar is now commencing a compression-assisted flow test which is expected to materially increase deliverability. For reference, the April 2024 program showed that reducing wellhead pressure by ~14 psi boosted flow rates by over 5x—from ~0.15 mmcf/d to ~0.80 mmcf/d.
• We have increased our target price from £0.85/sh to £0.95/sh as we increase our chance of development of the contingent resources from 65% to 75%. Our unrisked NAV stands at £1.70/sh for helium (contingent + prospective) and £0.73/sh for CO₂ resources (Pmean).
Next steps
On completion of the compression-assisted test at Jetstream #1 expected later this week, Pulsar will flow test Jetstream #2. We anticipate that the company will subsequently release an updated resource estimate for the Topaz project. Pulsar announced last Friday that it had been offered a project financing facility of up to US$12.5 mm to support development of the Topaz helium processing plant. Additionally, US$1.5 mm remains undrawn under the company’s existing US$4 mm credit facility (the duration of which was extended from March to November 2026).
Valuation
Assuming a flow rate of 0.75 mmcf/d and helium concentration of 12.5%, Jetstream #1 could generate revenue of ~US$22 mm (@US$650/mcf for helium) during the first year of production (with no decline). For the full field development scenario at 3.5 mmcf/d, we estimate annual operating cash flow of ~US$80 mm (net of royalty, pre-tax), excluding any contribution from CO2. We assume total capex for drilling and surface facilities of US$20-25 mm. Our unrisked NAV for the company is ~£2.42/sh with a ReNAV of £0.93/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.
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.