Pulsar Helium Inc. (AIM: PLSR, TSXV: PLSR, OTCQB: PSRHF) announces up to 10 exploration wells at its flagship Topaz helium project in Minnesota (USA) starting in late September. The company also announced that gas flow from the Jetstream #1 well has been increased to 1.3 million cubic feet per day (MMcf/d) under compression. This is 2.6 times higher than the recently announced natural flow rate of approximately 501,000 cubic feet per day (approximately 501 Mcf/d).
Jetstream #1 Produces Clean, Helium-Rich Gas
The well produced dry gas with no formation water, confirming a clean, helium-rich gas stream. Gas samples were taken from Jetstream #1 over a period of 9 days, with a total of 14 samples sent for laboratory analysis. Given its strong performance, Jetstream #1 is considered a leading candidate for potential future production, subject to ongoing analysis and development planning.
During compression, special surface equipment is used to lower the wellhead pressure, making it easier for gas to flow out. The data obtained is sufficient for the strategic partner, Earthly Labs, a subsidiary of Chart Industries (NYSE:GTLS), to begin planning and sizing a production facility. In November 2024, Pulsar and Chart signed a framework agreement that secures Pulsar access to state-of-the-art technology for the processing of helium and CO₂. This includes both technical planning and the future delivery of a customized gas processing plant for the Topaz project in Minnesota.
CEO Statement Highlights Exceptional Reservoir Potential
Thomas Abraham-James, President and CEO of Pulsar, commented:
“The outstanding result from Jetstream #1, which flowed substantial volumes of gas with minimal assistance, underscores the reservoir’s exceptional potential. Armed with these well results and our partnership with Chart Industries on advanced processing solutions, we are well positioned to unlock Topaz’s full value as a primary helium project.”
Exploration Program to Begin Late September
Pulsar Helium plans to start drilling up to ten smaller-diameter exploration wells on its Topaz license by the end of September. To do this, it has signed a drilling contract and a master service agreement (MSA) with Timberline Drilling Inc. The drilling will target helium-bearing zones at depths of up to ~3,937 feet (~1,200 meters) indicated by seismic models. Timberline will mobilize a CS 3000 core drilling rig for the campaign.
The drilling is intended to provide high-resolution rock samples (cores) for geological and petrophysical analysis, among other things. The work will be carried out around the clock with rotating teams to complete the program efficiently. Core drilling will provide continuous rock samples from the target zones, providing detailed geological data to refine the subsurface model. In addition to pressure and flow measurements, a mud logging system will be used and well logging will be performed after completion of drilling.
Program Preparation and Permits Secured
Pulsar has budgeted and prepared the program, and an advance payment of US$70,000 for the blowout preventer (BOP) has been made to ensure the availability of the drilling rig and crew. All relevant permits for the first three planned wells have also been obtained.
Timberline has a large fleet of drilling rigs and a strong track record of safety and productivity. Timberline has drilled over 6.4 million feet (1,950 kilometers) of core drilling over the past six years and operates approximately 85 drilling rigs with more than 300 employees.
Key Objective: Defining Reservoir Extent and Productivity
The primary objective of the new drilling program is to delineate the extent and productivity of the helium reservoir at Topaz. Data from these core drill holes, including gas encounters, core samples, and well logs, will enable Pulsar to map the continuity of the reservoir between drill sites and identify optimal areas for future production. Up to ten planned wells provide flexibility for the company, allowing Pulsar to adjust locations based on results achieved during the program, if necessary.
The Jetstream #2 appraisal well (drilled to a depth of 5,638 feet/1,718 meters) showed an initial gas flow of approximately 40 to 50 thousand cubic feet per day (Mcf/d) and high and strong initial shut-in pressure (~151 psi/10.4 bar), which was above that of Jetstream #1, confirming the high potential of the reservoir. Although continuous flow was restricted by persistent blockages in the wellbore, the data collected remains valuable and is being evaluated to determine the cause of restrictions and the next steps. No further testing is planned until this assessment is complete.
Conclusion
The latest flow pressure and rate data from Jetstream #1 indicate that the reservoir can deliver substantially higher rates under compression compared to natural flow. The well’s compression-assisted performance exceeded previous benchmarks (for comparison, a smaller-scale compression test in early 2024 yielded ~821 Mcf/d). Jetstream #1 will remain shut-in during development planning and is considered a strong candidate for potential future production.
