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Follows successful Resource Evaluation & drilling of Jetstream #1 Helium Well at Topaz Helium Project
CASCAIS, PORTUGAL / ACCESSWIRE / October 2, 2024 / Pulsar Helium Inc. (TSXV:PLSR, Financial) & (OTCQB:PSRHF) ("Pulsar" or the "Company"), the helium development company, is pleased to announce that it has increased its net land position by c.100% at the Topaz Helium Project (the "Topaz Project") in the State of Minnesota, USA. This expansion follows the successful drilling of the Jetstream #1 well and the release of an independent resource report that underscores the Topaz Project's existing resource with high helium concentration and upside potential. The Company is also pursuing additional acreage to secure district-wide control of what it believes to be a newly emerging helium reservoir that is regional in scale.
HIGHLIGHTS
A c.100% increase in land position expands the Company's interest in Topaz Project from 2,089 to 4,181 net acres.
The terms state that after the initial 5-year lease extension, any developed tract can be extended further as long as Topaz continues producing gas.
Pulsar is also pursuing additional acreage through the newly legislated State leasing process.
Thomas Abraham-James, President & CEO of Pulsar, commented: "Based on existing data demonstrating the continuity of the system, along with the Sproule resource report, which highlighted the helium resource of one prospect in the area, we believe the Topaz Project has district size scalability. Accordingly, as part of our growth strategy, we are actively securing key land positions. Following this option exercise, we are pleased to have almost doubled our net acreage and are now targeting additional land acquisitions, guided by well-defined geological insights."
"These are exciting times for Pulsar, especially at the Topaz Project, where our next steps include deepening the Jetstream #1 well, which we believe will positively influence our resource update, then assessing drilling step-out wells, and the completion of additional seismic studies. These efforts will enhance our understanding of this dual-commodity project, which benefits from strong domestic demand for both helium and CO2. I look forward to regularly updating shareholders as we execute our project plan and continue to build value for all stakeholders."
DETAILS
Following the successful drilling and testing of the Jetstream #1 well, Sproule International Limited ("Sproule") completed an independent resource update for the Topaz Project confirming the presence of commercial concentrations of both helium and CO2, with no significant environmental or logistical barriers to commercialization. Coupled with data from multiple geophysical, geological, and seismic studies, the Company is confident in the Topaz Project's district-scale potential. As a result, the Board is actively expanding its land holdings to capitalize on this opportunity.
The initial expansion of the land package is through the exercise of its exclusive option with a private mineral right holder over 2,092 net acres for USD$313,800 or USD$150 per acre. The primary term for this land package is 5 years for undeveloped land, which is extendable for the term of production and carries a 20% royalty. The Company already has 2,089 net acres leased with private mineral right holders within the Topaz Project area.
In addition to the option exercise, the Company is in discussion with the State of Minnesota (the "State") to increase the Company's acreage in the Topaz Project area. New legislation was passed in May 2024 that allows the State to lease mineral rights for helium for the first time. The Minnesota Department for Natural Resources and the Department of Iron Range Resources & Rehabilitation recently visited the Topaz Project and underlined their enthusiasm for its advancement, which is recognised as having a positive economic impact to the local and regional area. Furthermore, the support for resource development within the State has been emphasised by the recently passed legislation.
The Company's land acquisition programme is running in tandem with plans to accelerate the development of the Topaz Project, which entails the deepening of the Jetstream #1 well, drilling step out wells and acquiring additional seismic surveys to further ascertain the true scale of the project. Sproule's recently completed Prospective resource statement (refer to the Company's announcement of August 21, 2024) estimated 2.8 Bcf Helium (P10) and 21.3 Bcf CO2 (P10) gross gas recoverable prior to the planned deepening of the Jetstream #1 well by a further c.500m seeking to intersect the full anticipated height of the reservoir.
About Pulsar Helium Inc.
Pulsar Helium Inc. is a publicly traded company listed on the TSX Venture Exchange with the ticker PLSR and on the OTCQB with the ticker PSRHF. Pulsar's portfolio consists of its flagship Topaz helium project in Minnesota, USA, and the Tunu helium project in Greenland. Pulsar is the first mover in both locations with primary helium occurrences not associated with the production of hydrocarbons identified at each. For further information visit https://pulsarhelium.com, follow us on X https://twitter.com/pulsarhelium?lang=en and LinkedIn https://ca.linkedin.com/company/pulsar-helium-inc.
On behalf Pulsar Helium Inc.
"Thomas Abraham-James"
President, CEO and Director
Further Information:
Pulsar Helium Inc.
[email protected]
+ 1 (604) 599-0310
OAK Securities*
[email protected]
+44 203 973 3678
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Forward-Looking Statements
This news release and the interview contains forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements") that relate to the Company's current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward-looking statements. Forward-looking statements herein include, but are not limited to, statements relating to the Company's intention to apply for admission to trading of the Company's common shares on the AIM Market of the London Stock Exchange and the timing of its targeted admission; the independent resource estimate for helium and CO2 at Topaz; the potential of CO2 as a valuable by-product of the Company's future helium production; the estimated Geological Chance of Success for the Prospective Resources and the Chance of Commerciality of Topaz; the potential for deepening Jetstream #1 and the potential impact of such deepening on the next iteration of the resource estimate; the Company's expectation that its application on an additional 32,949 acres for the extraction of non-hydrocarbon gases will be granted in the near term; and the intended use of proceeds from the AIM IPO. Forward-looking statements may involve estimates and are based upon assumptions made by management of the Company, including, but not limited to, the Company's capital cost estimates, management's expectations regarding the availability of capital to fund the Company's future capital and operating requirements and the ability to obtain all requisite regulatory approvals.
No reserves have been assigned in connection with the Company's property interests to date, given their early stage of development. The future value of the Company is therefore dependent on the success or otherwise of its activities, which are principally directed toward the future exploration, appraisal and development of its assets, and potential acquisition of property interests in the future. Un-risked Contingent and Prospective Helium Volumes have been defined at the Topaz Project. However, estimating helium volumes is subject to significant uncertainties associated with technical data and the interpretation of that data, future commodity prices, and development and operating costs. There can be no guarantee that the Company will successfully convert its helium volume to reserves and produce that estimated volume. Estimates may alter significantly or become more uncertain when new information becomes available due to for example, additional drilling or production tests over the life of field. As estimates change, development and production plans may also vary. Downward revision of helium volume estimates may adversely affect the Company's operational or financial performance.
Helium volume estimates are expressions of judgement based on knowledge, experience and industry practice. These estimates are imprecise and depend to some extent on interpretations, which may ultimately prove to be inaccurate and require adjustment or, even if valid when originally calculated, may alter significantly when new information or techniques become available. As further information becomes available through additional drilling and analysis the estimates are likely to change. Any adjustments to volume could affect the Company's exploration and development plans which may, in turn, affect the Company's performance. The process of estimating helium resources is complex and requires significant decisions and assumptions to be made in evaluating the reliability of available geological, geophysical, engineering, and economic date for each property. Different engineers may make different estimates of resources, cash flows, or other variables based on the same available data.
Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward- looking statements. Such risks and uncertainties include, but are not limited to, that Pulsar may be unsuccessful in drilling commercially productive wells; the uncertainty of resource estimation; operational risks in conducting exploration, including that drill costs may be higher than estimates and the potential for delays in the commencement of drilling; commodity prices; health, safety and environmental factors; and other factors set forth above as well as under "Cautionary Note Regarding Forward Looking Statements and Market and Industry Data" and "Risk Factors" in the Final Prospectus dated July 31, 2023 filed on the Company's profile on www.sedarplus.ca. Forward-looking statements contained in this news release are as of the date of this news release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Company to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. No assurance can be given that the forward-looking statements herein will prove to be correct and, accordingly, investors should not place undue reliance on forward-looking statements. Any forward-looking statements contained in this news release and interview are expressly qualified in their entirety by this cautionary statement.
SOURCE: Pulsar Helium Inc.
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