Pulsar Helium Targets Mid-2026 Production Decision with 10-Well Drilling Program

• Pulsar Helium (TSXV:PLSR) operates the Topaz flagship project in Minnesota, USA, focusing on primary helium production with concentrations up to 14.5%, significantly above the industry standard of 0.3%
• Immediate drilling program targeting up to 10 additional wells beginning end of September 2025, with results expected through Q1 2026, aimed at expanding resource classification and proving reservoir scale
• Debt financing secured with a Michigan bank offering $12.5 million for plant development, targeting development readiness by mid-2026 with 12-18 month construction timeline for combined helium/CO2 processing facility
• Strategic positioning in critical materials space as helium gains recognition for semiconductor and high-tech applications, with company targeting primary helium production rather than natural gas byproduct model
• Dual revenue streams from both helium (direct to end users) and CO2 (to distributors), with local Minnesota market showing strong demand for CO2 due to fragmented supply chain

Pulsar Helium Inc. is advancing what could become one of North America's most significant primary helium discoveries. Led by President and CEO Thomas Abraham-James, the company is developing its flagship Topaz project in Minnesota while expanding its land position to capture what appears to be an extensive helium-bearing geological system. With exceptional gas concentrations, strategic location, and upcoming drilling programs, Pulsar represents a unique opportunity in the evolving critical materials landscape.

Exceptional Resource Quality and Grade

The cornerstone of Pulsar's value proposition lies in the extraordinary helium concentrations discovered at its Topaz project. James explains the significance:

"With the gas analysis that we have from Jetstream, the gases present are CO2 helium and then you have nitrogen and then you have very trace amounts of hydrocarbons there. So what we're seeing is helium results up to 14.5%."

This concentration represents a paradigm shift from industry norms.

"To give that some idea of context, you could think of helium as a bit like precious metals. That grade is king. In the industry, the deemed cut off is anything with 0.3% helium or more is interesting. 14.5% is just incredible. It's off the charts."

The implications extend beyond simple economics. Higher concentrations reduce processing complexity, lower overall gas volumes required for economic production, and minimize infrastructure requirements. The gas composition is notably clean, containing primarily CO2, helium, and nitrogen with only trace hydrocarbons, simplifying processing requirements and reducing operational risks.

Expanding Land Position

Pulsar's recent land acquisition demonstrates management's confidence in the geological model and regional potential. The new package - approximately 35 kilometers west of Topaz extending another 150 kilometers - represents what James describes as "same but different" geology. While maintaining the same source rock for helium generation, the western area targets conventional sedimentary reservoir rocks rather than the fractured basement system at Topaz.

"We've certainly found that this is not an isolated occurrence that it does actually extend."

The acquisition, structured as an all-share deal, allows the company to preserve cash for core development activities while expanding its prospective footprint significantly.

Aggressive Drilling Campaign

The company's upcoming drilling program represents a critical inflection point. Beginning at the end of September 2025, Pulsar plans to drill up to 10 additional wells through Q1 2026. These wells differ strategically from existing production-ready wells Jetstream 1 and 2.

"The wells that we're about to drill are purely for resources. They wouldn't be used for production but we would be able to get from them the pressure data, the flow data, gas composition, that's all required for that resource calculation."

The drilling program aims to upgrade prospective resources to the higher-confidence contingent classification. Current resources include both contingent resources around existing well control and prospective resources based on geophysical modelling across the broader area.

Interview with Thomas Abraham-James, CEO of Pulsar Helium

Production Characteristics

Pulsar's wells demonstrate exceptional natural flow characteristics without requiring water production or compression. 

"We have dry gas ... We don't have those [water ]issues. Ours is all natural flow without that hydrostatic head. But what we're still seeing is ... flow rates in excess now of a million cubic feet per day."

The absence of produced water eliminates significant operational complexity, environmental concerns, and processing costs that typically burden hydrocarbon operations. The reservoir system operates at depths between 2,500 and 5,000 feet, representing accessible drilling targets with manageable development costs.

Strategic Partnership

Pulsar has aligned with Chart Industries, a leading American industrial gas equipment manufacturer, for plant design and fabrication. This partnership addresses one of the sector's most significant challenges: reliable processing technology.

"We've aligned ourselves with a company called Chart Industries, an American company that designs and fabricates industrial gas equipment. The reason for going for them is that the gas that we have we know that it's readily upgradable that you can process it. There's none of the deleterious gases in there that make it problematic. The gas is effectively quite clean."

This technical partnership provides confidence in processing capabilities while ensuring bespoke plant design optimized for Pulsar's specific gas composition and production requirements.

Financing Strategy

The company has secured preliminary debt financing commitments that significantly de-risk development.

"What we actually announced the other week was that a bank in the US in Michigan who is a shareholder of ours has put out that their interest in providing $12.5 million should we get to the point of needing capital." 

Capital requirements for helium processing remain modest compared to traditional mining operations. 

"On the lower side, you're probably looking at about 12 odd million dollars for a helium plant. On the higher side, you're looking at 50 to 60 million depending on the scale." 

Market Dynamics and Commercial Strategy

Pulsar's dual product strategy addresses two distinct but complementary markets. For CO2, the company targets immediate sale to distributors, capitalizing on regional supply constraints. 

"The broader macro picture for CO2 in the United States is that it is quite fragile the supply at the moment. Where we are in the northern US in Minnesota that's quite displaced from where you see the CO2 production or the major CO2 producers. So the local market there is quite significant."

For helium, the strategy involves direct sales to end users, eliminating intermediary margins and building customer relationships. This approach leverages helium's unique properties and market structure while positioning Pulsar as a flexible supplier in a rigid market dominated by long-term contracts.

Development Timeline

Management maintains an aggressive development timeline targeting production readiness by mid-2026. 

"For us what we see is that with this drill program having that completed, with any luck the first half of next year we'll have crunched through all the numbers of the resource update, have an economic assessment." 

Following resource updates and economic assessments expected in the first half of 2026, plant fabrication and commissioning requires 12-18 months, potentially enabling production by late 2027 or early 2028. This timeline could provide significant first-mover advantages in the primary helium market, which James notes currently lacks the flexibility that byproduct producers cannot deliver.

The Investment Thesis for Pulsar Helium

• Exceptional Resource Quality: 14.5% helium concentrations versus 0.3% industry threshold create significant processing advantages and margin potential
• Proven Technology Partnership: Chart Industries alliance provides confidence in processing capabilities and bespoke plant design optimization
• Strategic Location: Minnesota location serves largest helium demand market while benefiting from local CO2 supply constraints
• Dual Revenue Streams: Combined helium and CO2 production provides revenue diversification and enhanced project economics
• Secured Preliminary Financing: $12.5 million debt commitment from Michigan bank reduces development risk and dilution concerns
• Extensive Land Position: Recent acquisition expands prospective area significantly while preserving cash through all-share structure
• Aggressive Development Timeline: Production readiness targeted by mid-2026 with 12-18 month construction period positions company among first primary helium producers
• Market Flexibility: Direct end-user sales model provides pricing power and customer relationship advantages over byproduct producers
• Clean Gas Composition: Minimal processing complexity reduces operational risks and capital requirements compared to typical hydrocarbon operations
• Natural Flow Characteristics: No water production or compression requirements eliminate significant operational and environmental concerns

The helium market exemplifies broader critical materials challenges facing advanced economies. Unlike traditional commodities, helium's unique physical properties—including its tendency to leak through containers and inability to be stored long-term—create structural supply chain vulnerabilities. Current production relies almost exclusively on natural gas byproduct streams, creating inflexibility for end users requiring predictable supply. James captures this dynamic: 

"What we're seeing is that with increased demand out there just the world's seeing just how truly fragile the helium supply chain is you've only got a couple of major producers and those are all natural gas plants. And then there's a little bit of helium which they strip out as a byproduct. So if you picture yourself as a semiconductor manufacturer and you want to have more helium, it's very difficult to get because there is no spot market."

The semiconductor and high-technology sectors driving artificial intelligence advancement require helium for manufacturing processes, creating strategic importance beyond traditional applications. Government recognition of helium as a critical material, combined with private sector supply security concerns, creates potential for strategic partnerships and off-take agreements similar to recent rare earth developments. Pulsar's positioning as a primary helium producer addresses this structural market failure while providing the flexibility that "clunky and ugly byproduct model" cannot deliver.

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