Pulsar Helium Aiming to Help Alleviate Global Helium Shortages

• Pulsar Helium recently completed a seismic survey that revealed a large helium anomaly that is open-ended, indicating potential for further exploration.
• The company's initial discovery well contained 10.5% helium, which CEO Thomas Abraham-James states is the second highest discovery concentration in North America.
• Pulsar aims to replicate its initial discovery with an appraisal well just 20 meters away in mid-February 2024. Further exploration wells will target areas identified in the seismic survey.
• Demand for helium continues to outstrip supply, with prices more than doubling over the past decade to over $600/mcf. New sources of supply like Pulsar's discovery are badly needed.
• If subsequent wells confirm commercial volumes of helium, Pulsar aims to construct a liquid helium production facility within 5 years.

About Pulsar Helium

Pulsar Helium is a helium exploration and development company focused on two main project areas in the USA and Greenland. The company, led by President and CEO Thomas Abraham James, went public in 2023 and is listed on the TSX-V. Its flagship project is Topaz, located in Northern Minnesota, where an initial discovery of helium-rich gas was drilled by chance in 2011. It has been drilled and flowed 10.5% helium. A recently completed 3D seismic survey revealed a large helium anomaly surrounding the discovery well that is open-ended, providing room for further step-out exploration.

Interview with Co-Founder, President & CEO, Thomas Abraham-James

Helium Market Fundamentals

The global helium market has been facing critical shortages over the past decade. Historically the US Federal Helium Reserve supplied over 40% of global demand, but reserves are now depleted to the point that the reserve will cease operations in early 2024. Other major suppliers like Qatar and Russia have faced export barriers, while global demand from industries like semiconductors, biotech, and aerospace continues to rise steadily. This supply/demand imbalance has caused helium prices to skyrocket, with current prices ranging between $500 mcf to $1200 mcf. Companies that can establish new sources of helium supply stand to benefit tremendously in this market environment.

Significance of Pulsar's Seismic Results

In December 2023, Pulsar Helium announced highly encouraging results from a seismic survey conducted around its initial helium discovery well. The survey revealed a distinct seismic anomaly encompassing and surrounding the discovery well location. CEO James states this verifies the 10.5% helium concentrations encountered in the discovery well, proving they are part of a much larger hydrocarbon system with stacked reservoirs. The size and orientation of the anomaly indicates significant exploration potential beyond the boundaries of the current 3D seismic area.

Upcoming Appraisal Drilling

Pulsar Helium is fully funded and permitted for an upcoming two-well appraisal drilling program set to commence in mid-February 2024. The first appraisal well will twin the discovery well, drilling deeper to assess the scale of the reservoir discovered last year. The second well will test another location identified on the seismic data. Key objectives are to prove reservoir continuity, scale up resource estimates, and collect data to plan out facilities for larger-scale helium production. Results from the wells will be released as they become available over the subsequent months.

Path to Liquid Helium Production

Assuming appraisal drilling confirms commercial-scale helium resources, Pulsar Helium aims to construct a liquid helium production plant. Liquid helium fetches over 4x the price of gaseous helium, so this represents the most profitable way to commercialize Pulsar's discovery. Capital costs for modular liquid helium facilities range from $10-$50 million depending on scale, so Pulsar's goals are to first prove sufficient helium reserves to justify construction of a plant. Producing for just 5 years could earn 3-4x the capital cost of the plant at current helium prices.

Key Risks

As with any junior resource explorer, significant risks remain for investors in Pulsar Helium. Most importantly, appraisal drilling beginning shortly may fail to prove commercial reservoir continuity and scale. However, strong initial results reduce this risk. The world-class helium prices currently being realized provide a strong incentive to advance this project. Executing initial production facilities on schedule and budget also represents a risk. However, Pulsar's experienced operations leadership reduces this risk.

Conclusion

Pulsar Helium provides investors a unique exposure vehicle to the supply-constrained helium market at exactly the right time. Confirmation of commercial-scale primary helium resources have the potential to provide shareholder returns. The recent seismic results derisk the story substantially, and investors await imminent appraisal drilling results that could confirm the large potential of this helium discovery. Pulsar Helium represents an intriguing risk/reward opportunity in the junior resource exploration sector.