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Why Pulsar Helium has game-changing potential for the US helium industry

Why Pulsar Helium has game-changing potential for the US helium industry

Timing is extremely important for start-ups. This also applies to the dozen or so helium exploration companies, which – spurred on by sharp price increase in the industrial gas helium – have been working to develop new helium projects around the world for a few years now. Much to the disappointment of many investors, there has been no market-moving success to date. An important incentive for the increased search for helium was the USA’s decision to liquidate its national strategic helium reserve, which had been in operation since the Cold War.

On a large scale, helium is produced exclusively as a by-product of natural gas production. As the only dedicated large-scale helium storage and purification facility in the world, the federal helium reserve was able to release stored helium to cushion market shocks, similar to the US strategic oil reserve. The sale of the US reserve system has undoubtedly increased nervousness in the markets and driven up prices. With recent sales of liquid helium exceeding USD $1,000 per thousand cubic feet whereas natural gas is ~USD $4. The race of the start-ups is not won by the first, but by the one who presents the market with the solution that really makes a difference. In terms of helium, this means that the company ideally even supplies a new strategic helium reserve that is not indexed to hydrocarbon production. We believe that the latecomer Pulsar Helium Inc (TSXV: PLSR, FRA: Y3K), which only went public in August of this year, is well on its way to providing the market with exactly this answer. (see below)

Conclusion: Pulsar is one of a handful of helium explorers looking for primary helium sources that are not linked to natural gas production. Pulsar Helium’s unique opportunity is to confirm a helium discovery in the US as early as February 2024 with its upcoming appraisal well, which could open up an entirely new, potentially huge helium field. So far, no other helium explorer has succeeded in making a discovery that justifies production volumes that would alleviate the ongoing global helium shortage. Most new helium companies have understandably gone where there were already known helium deposits, identified via natural gas exploration and production. Their advantage is often the infrastructure of existing wells and pipelines. The fact that these mature deposits have previously been extracted (for helium and/or hydrocarbons) means that these deposits are generally not under high pressure because at least some of the gas has already been extracted. This is precisely what makes the discovery of Topaz in Minnesota so exciting. It is a completely brand new discovery and blind target that could never have been detected using conventional exploration methods. It is only thanks to chance that in 2011 when the Topaz helium discovery was made by drilling that we know helium occurs in Minnesota. According to Pulsar’s recently published passive seismic model, the gas could presumably accumulate and concentrate under a ~500 metre thick overburden over very long geological periods, but not escape – hence the high pressure and helium concentration. Fun fact: the geological setting of the Topaz project in Minnesota is about one billion years older than the one around Noble’s project in Tanzania. Pulsar has much in its favour, a drilled discovery that ranks among the highest in the world, a completely new project area that has all of the hallmarks of a large helium system, being in the USA and close to abundant infrastructure and highly skilled labor in Minnesota. The upcoming appraisal well in February should be a gamechanger for the company, and with any luck will enable the US to continue as a major producer of this crucial commodity.

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Why Pulsar Helium has game-changing potential for the US helium industry

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 According to §34b WpHG and § 48f Abs. 5 BörseG (Austria) we would like to point out that GOLDINVEST Consulting GmbH and/or partners, principals or employees of GOLDINVEST Consulting GmbH hold shares of Pulsar Helium and therefore a conflict of interest exists. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares of Pulsar Helium at any time, which could influence the price of the shares. In addition, a consulting or other service contract exists between Pulsar Helium and GOLDINVEST Consulting GmbH, with which a further conflict of interest exists, since Pulsar Helium remunerates GOLDINVEST Consulting GmbH for reporting.