Announcement • Jun 15
Pulsar Helium Inc. Provides Technical Update on Topaz Helium Project and Announces Production-Ready Drill Program Pulsar Helium Inc. provided a technical update on the Company's Topaz Helium Project in Minnesota. Site activities concluded: all seven Jetstream exploration wells at the Topaz Project successfully drilled. Planning underway to initiate drilling of two to four production-ready wells that will twin the most successful Jetstream exploration wells at the Topaz Project and complement Jetstream #1 and #2 that are already production-ready. Calculated down-hole pressures higher than anticipated, combined with wireline logging data and reservoir modeling, have noticeably increased confidence in the scale and quality of the Topaz Project. Well data from the Jetstream program has enabled correlation of the Topaz reservoir system across the acreage, underpinning development planning. Field operations at the Topaz Project have concluded, with all seven Jetstream exploration wells having been successfully drilled. The Company has now transitioned from active site operations into a planning phase focused on the next stage of Topaz Project's development. Planning is underway for a new drill program comprising drilling between two and four production-ready wells at the Topaz Project. These wells will twin the most successful exploration wells drilled during the Jetstream program, building directly on the geological and reservoir insights gained across all seven wells. The new production-ready wells will complement Jetstream #1 and Jetstream #2, both of which are already designated as production-ready, advancing the Company toward a multi-well production scenario. The Company has carefully assessed the merits of conducting an extended flow-testing program on the completed exploration wells (Jetstream #3 through #7) and decided not to pursue this. It is important to note that these wells were designed and drilled specifically to gather maximum subsurface data, they were not designed, nor permitted, to be converted into production wells. The decision not to conduct extended flow testing on these exploration wells was further reinforced by the rapid progress of new Minnesota helium legislation through the state legislature during the drilling campaign. As the bill moved quickly toward enactment, bringing with it a clear regulatory framework for helium production in Lake, Cook and St. Louis Counties, it became the right strategic decision to preserve the helium resource and direct capital toward the development program rather than venting significant volumes of gas during the legislative process. Current helium market conditions and pricing dynamics indicate that shareholder value is best served by directing capital toward the drilling of a further two to four production-ready wells. The Company believes this approach optimizes both the economic and strategic potential of the Topaz Project. Drilling results, wireline logging data, reservoir modeling, and higher-than-anticipated calculated down-hole pressures across the Jetstream program have significantly increased the Company's confidence in the scale and quality of the Topaz Project. The well data has also enabled correlation of the Topaz reservoir system across the acreage, providing a robust technical foundation from which to design and target the forthcoming production-ready wells. Seismic interpretation of the recently conducted 2D seismic survey is now complete. Well data from the Jetstream program, the 2D seismic survey, and airborne gravity gradiometry are being integrated into a comprehensive geological model for the Topaz Project. This unified model is expected to noticabley enhance the Company's understanding of the reservoir system and inform well targeting for the forthcoming production-ready drill program. New Risk • Jun 02
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -US$13m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$13m free cash flow). Share price has been highly volatile over the past 3 months (19% average weekly change). Earnings have declined by 44% per year over the past 5 years. Shareholders have been substantially diluted in the past year (40% increase in shares outstanding). Revenue is less than US$1m. Minor Risk Significant insider selling over the past 3 months (CA$4.7m sold). Buy Or Sell Opportunity • Jun 02
Now 27% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.8% to CA$1.53. The fair value is estimated to be CA$2.08, however this is not to be taken as a buy recommendation but rather should be used as a guide only. 
