Pulsar Helium Poised for Growth with Upcoming Appraisal Well

• Pulsar Helium recently listed on the TSXV exchange in Canada and raised $3.1 million CAD in their IPO, being the only IPO on the exchange at that time.
• They are acquiring more land around their existing helium discovery well in Minnesota to secure the area and submitted an application to the state for additional land.
• They will be starting their appraisal drilling program in December with the goal of better defining the resource and its characteristics.
• Helium prices have been rising steadily, with current prices around $625/mcf for gaseous helium and over $1000/mcf for liquid helium.
• The upcoming sale of the U.S. Federal Helium Reserve could impact helium prices as it provided stability to the global helium market. Its privatization raises concerns on where that helium will be allocated.

About Pulsar Helium

Pulsar Helium Inc is a helium exploration and development company focused on assets in Minnesota, USA. Listed on the TSX Venture Exchange in August 2022, Pulsar Helium raised CAD$3.1 million during its IPO to fund initial exploration and appraisal drilling. The company's flagship project is located in Minnesota, where a historic well in 1941 intercepted a helium concentration of 10.5%. Pulsar Helium believes this project has the potential to become a leading domestic helium producer amid surging global helium demand.

Interview with Thomas Abraham-James, President & CEO of Pulsar Helium Inc.

Upcoming Appraisal Well

In October 2022, Pulsar Helium signed a contract to spud an appraisal well in early December with the option for a second contingent on fundraising. This appraisal well will be drilled 20m from the original historic discovery well that first intercepted the 10.5% helium. While the original well cannot be re-entered, newly acquired seismic data will help optimize positioning and reservoir targeting for the appraisal well.

During drilling, real-time gas sampling will provide crucial data on current helium concentrations and flow rates. The well will also undergo pressure testing and be set up for potential future production. Success will allow reserves estimation and economic studies for a production scenario.

Land Acquisition and Expansion

Concurrent with drilling plans, Pulsar Helium has been actively expanding its land position around the discovery well. Licensing in Minnesota occurs in a checkerboard pattern, requiring the assembly of many small mineral leases. In October 2022, the company acquired substantial additional private mineral rights in the target area. Pulsar Helium has also begun negotiating with the State government for leases in State-owned sections. An application is filed, and the company is working closely with regulators on establishing a framework for helium leasing. Surface rights have also been acquired at the appraisal well location.

Robust Helium Market Outlook

Pulsar Helium is targeting its initial production in a market with strong helium pricing and supply deficits. Prices have risen steadily from $450/mcf a year ago to current sales over $600/mcf. The global helium market is approx. 6 bcf/year, with U.S. federal stockpile reserves declining to just 4 bcf remaining. Previously, this stockpile provided stability and depressed prices. With sell-off and privatization, structural supply tightness is expected. Conference events in October 2022 reinforced the positive outlook, with the U.S. federal auction attracting strong industry interest.

Two output products for Pulsar Helium are planned. Initial gaseous helium sales can be achieved relatively quickly to supply local Minnesota customers. Installation of a large-scale processing facility for higher value liquid helium would follow. Liquid helium currently sells for over $1000/mcf compared to just $4/mcf for natural gas.

Conclusion

With drilling imminent, Pulsar Helium is on the cusp of a potentially company-making appraisal well. Success would prove a key step towards domestic helium production amid a backdrop of strong pricing and bullish industry fundamentals. The experienced management team has systematically acquired the land and infrastructure needed for a fast track to initial output. Pending positive results, Pulsar Helium is primed to emerge as a standout helium growth story.