"This is a great day for helium exploration."
Pulsar Helium Inc (TSXV:PLSR; FRA: YK3) has consistently measured helium at its Jetstream#1 well at its Topaz project in Minnesota, USA, from a depth of 1,750 feet (533 metres) to the end of the well at 2,200 feet (671 metres) over an interval of 133 metres. Before reaching the final depth, helium concentrations of up to 12.4 % were determined on site using a mass spectrometer!
After reaching the end point, the borehole was conditioned with compressed air in order to clean it of flushing residues. Helium-rich gas then began to flow naturally from the well to the surface at an unmeasured rate from 6.30am CST local time. Within 5 hours, the composition of the gas contaminated by drilling mud and air changed from 3.7% to 5.1% helium. Due to the considerable amounts of air pumped into the borehole during the drilling process, these measurements are considered to be the minimum value due to dilution by atmospheric impurities.
Pulsar’s President and CEO, Thomas Abraham-James, commented: “This is an excellent result. I am delighted that helium has been detected in the Jetstream #1 exploration well. This is a great day for helium exploration. The well confirms the original discovery in Minnesota.”
Due to the loss of circulation and flowback during drilling, the depth of origin of the gas shows cannot be determined until Baker Hughes’ extensive wireline well logs are analysed. Baker Hughes was on site yesterday and carried out the relevant measurements. The data must now be processed. Once the logging is completed by Baker Hughes, the well will be prepared for flow testing and the rig will be released and demobilised. As soon as the road conditions on the spring-softened roads allow heavy traffic again, Pulsar intends to bring a truck to Jetstream #1 for special well tests to measure the exact flow and pressure build-up of the gas.
Conclusion: Pulsar has achieved the primary purpose of its appraisal well. It is now clear that the original accidental discovery on the Topaz project in 2011 has substance. Helium concentrations of up to 12.4 per cent are exceptional, as is a continuous gas-bearing horizon of 133 metres that coincides with the 3D-seismic analysis. According to Pulsar a helium concentration of at least 5.1 per cent can already be assumed as being the minimum concentration. But there is much to suggest that this value will improve further once the contaminated borehole continues to recover. Even if the value was to remain at 5.1 per cent helium, it should be noted that this is 5 to 10 times the helium concentration of some of the competitors in the space. Helium concentrations as low as 0,3% are deemed to be of economic interest. What makes the Topaz project stand out from its peers is the unique geology of Minnesota, where they are the first movers. The combination of high helium content with the potential size of the deposit (indicated by seismic data) and the pressure under which the system appears to be could provide a globally unique setting. We already know, the helium bearing gas mixed with drilling mud flows to the surface by itself! Apart from that, Pulsar has held back on making statements about the pressure in its release because the relevant measurements have yet to be carried out. Some important pieces of the puzzle are therefore still missing in order to be able to fully assess the significance of the discovery. We will know in a few weeks if grade, size and pressure come together in the Pulsar discovery. In the meantime we would not be surprised if Minnesota became the new hotspot for helium. Pulsar has certainly put the US state firmly on the map.
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