Pulsar reports progress at Topaz helium project
By Josh White
Date: Wednesday 29 Jan 2025
(Sharecast News) - Pulsar Helium reported significant operational progress at its Topaz helium project in Minnesota in its 2024 results on Wednesday, with drilling and appraisal activities advancing towards potential production.
The AIM-traded company confirmed helium concentrations of between 7.9% and 14.5% at the Jetstream 1 appraisal well, which was drilled in February last year following encouraging seismic survey results.
It noted that a competent persons report from Sproule International in August estimated contingent and prospective helium and carbon dioxide resources at Topaz, covering 13% of Pulsar's leased acreage.
The highest estimate for prospective helium resources reached 205.9 million cubic feet.
After the financial year ended on 30 September, Pulsar said it deepened the Jetstream 1 well to 5,100 feet this January, encountering multiple helium-bearing zones, with mud log gas levels showing up to 7.24% helium.
Drilling at the Jetstream 2 appraisal well started on 16 January, aiming to provide additional reservoir data for future resource estimates and production modelling.
The company also signed an agreement with Chart Industries to develop a procurement roadmap for helium and carbon dioxide processing technologies.
The two firms were reportedly working towards a master services agreement.
Financially, Pulsar raised CAD 4.3m (£2.4m) in January last year through a private placing, and completed a £5m fundraise in October as part of its admission to the AIM market in London.
In December, the firm launched a $7.5m brokered private placing, closing a first tranche of $2m in early January, with participation from institutional investors including University Bancorp, which now holds 4.99% of Pulsar's outstanding shares.
Looking ahead, Pulsar said it expected the deepening of Jetstream 1 and the drilling of Jetstream 2 to provide critical data for resource estimation and production planning.
Flow testing for both wells was scheduled for early March following a post-drill stabilisation period.
"The period was one of transformation for Pulsar - a year in which our flagship Topaz Project in Minnesota flowed one of the world's highest concentrations of helium at up to 14.5%," said president and chief executive officer Thomas Abraham-James.
"As a reminder, commercially viable helium project concentrations begin at 0.3%.
"The seismic data we received and interpreted reinforced our plans to deepen the Jetstream 1 well and drill additional step-out wells."
Abraham-James noted that after the period ended, the company deepened the Jetstream 1 well to 5,100 feet, with multiple helium zones encountered throughout the deepening operation from 2,200 feet to 5,100 feet, and mud log gas levels containing up to 7.24% helium that were heavily diluted by air.
"Drilling of Jetstream 2 appraisal well also commenced in January, which is planned to reach approximately 5,000 feet.
"Looking ahead, once drilling of the Jetstream #2 well is complete, additional data collection will commence.
"This includes the collection of down-hole wireline logs, an optical televiewer at Jetstream 1 and 2, and flow testing and pressure build-up monitoring planned for early March 2025."
The deepening of Jetstream 1 and initial drilling at Jetstream 2 would provide information for the next iteration of resource estimating, production modelling, and further appraisal well planning, Thomas Abraham-James explained.
"In October, Pulsar dual listed on the AIM market of the London Stock Exchange, simultaneously raising £5m - this marked an exciting step for the Company, which has enabled UK investors to join Pulsar on its journey to become a key supplier of helium, helping to address the global supply gap.
"London, as a global financial hub with a strong investor appetite for critical resources, provides the perfect platform for Pulsar's growth.
"I look forward to sharing the data that we collect in the subsequent operations once drilling is completed at Jetstream 2, and revealing how it informs future developments and the understanding of our project."
At 0951 GMT, shares in Pulsar Helium were up 0.72% at 26.69p.
Reporting by Josh White for Sharecast.com.
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