Existing Well to Be Deepened
Pulsar Helium Inc. (TSXV:PLSR ; OTCQB:PSRHF; FRA: Y3K) is significantly expanding its land position around the Topaz Helium Project in the state of Minnesota, USA. By exercising an option with a private landowner, the project’s footprint doubles from 2,089 to 4,181 net acres, which equates to an area of approximately 16 km². The additional areas were acquired for $313,800 USD or $150 per acre.
The lease terms state that after the initial 5-year lease extension, any developed area can be further extended as long as Topaz continues to produce gas. The royalty rate is 20%. As recently as May 2024, a new law was passed in Minnesota allowing the state to lease helium prospecting rights for the first time. Pulsar aims to lease state land under this new regulation and has already submitted corresponding applications. Representatives from the Minnesota Department of Natural Resources and the Department of Iron Range Resources Rehabilitation recently visited the Topaz project and signaled their support.
Thomas Abraham-James, President CEO of Pulsar, commented: “Based on the existing data demonstrating the continuity of the system, and the Sproule resource report highlighting the helium resource of a deposit in the area, we believe the Topaz project has district-scale scalability. Accordingly, we are actively securing key land positions as part of our growth strategy. Following this option exercise, we are pleased to have nearly doubled our net acreage and are now pursuing further land acquisitions guided by sound geological insights.”
Pulsar plans to deepen the existing Jetstream #1 well shortly and expects positive impacts on the resource. Additionally, the evaluation of step-out wells and the completion of additional seismic studies are pending.
The consulting firm Sproule International Limited recently conducted the first independent resource estimate for the Topaz project and confirmed the “presence of commercial concentrations of helium and CO₂”. Sproule also confirmed in its report that there are no significant ecological or logistical barriers to commercialization. The prospective resource (see the company’s announcement from August 21, 2024) was estimated by Sproule at 2.8 billion cubic feet of helium (P10) and 21.3 billion cubic feet of CO₂ (P10) in recoverable gross gas, before the planned deepening of the Jetstream #1 well by approximately another 500 m to intersect the entire expected height of the reservoir.
After evaluating data from multiple geophysical, geological, and seismic studies, the company is more convinced than ever of the district-level potential of the Topaz project.
