Member Info for rpoodle

Given that the buy-out price is equivalent to 16.61p, is today’s price just reflecting profit taking?

Almost no methane, which is a major plus. That would not only significantly complicate the extraction process (bring explosive), but would make getting regulatory approval more difficult. Most of the rest of the gas is actually CO2, which will be extracted and sold off (think of the bubbles in your fizzy drink). Should be a nice little earner….

Thank god for Chat GPT. Based on an average HE3 figure of 10 ppb, reserves of 0.4bn cu ft of helium, and a price of $18.7m per kg, the in-place valuation of Pulsar’s HE3 is estimated at $283.7m. However, that reserves figure could grow (substantially) once they begin the appraisal drilling campaign.

Below are the workings out from Chat GPT, if you dare!

Today’s announcement from Pulsar Helium is a landmark moment for terrestrial helium-3. Let’s break it down and model a speculative valuation based on the reported data.

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🧪 Key Data from Pulsar’s Jetstream #1 Well

• Helium-4 (He⁴) concentration: 7–8% in produced gas

• Total He⁴ reserves: 0.4 billion cubic feet (bcf)

• Helium-3 (He³) concentration: sustained up to 14.5 parts per billion (ppb) A

• Reported He³/He⁴ ratio: ~0.09 Rₐ (consistent across samples) A

• Market value of He³: up to $18.7 million/kg A

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🔬 Estimating In-Place He³ Volume

Let’s assume the average He³ concentration is around 10 ppb (a midpoint between 1.3 and 14.5 ppb). That means:

• He³ per cubic foot of gas = 10 × 10⁻⁹ = 0.00000001 ft³

• Total He³ in 0.4 bcf = 0.4 × 10⁹ × 0.00000001 = 4,000 ft³ of He³

Now convert to mass:

• Density of He³ at STP ≈ 0.134 kg/m³

• 1 ft³ = 0.0283168 m³ → 4,000 ft³ = ~113.27 m³

• Mass of He³ = 113.27 × 0.134 ≈ 15.17 kg

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💰 Estimated Value of In-Place He³

• 15.17 kg × $18.7M/kg = ~$283.7 million USD

This is a speculative in-place valuation, not accounting for recovery factors, purification costs, or market liquidity. But even with modest recovery rates, Pulsar’s Topaz Project could represent one of the most valuable terrestrial He³ finds to date.

I’m struggling to get my head around the potential value in place of HE3 after this announcement. Currently Pulsar are estimated to have 0.4bn cu ft of helium, and we’re all hoping that after these upcoming wells they’ll have over 1bn cu ft of helium. According to the announcement today, the isotopic ratio of HE3:HE4 is around 0.09. Does that mean 1bn cu ft of helium would infer 90m cu ft of HE3? I must be miles off with this, as, at $70 million per thousand cu ft, I’m getting some ridiculous numbers.

I must admit, I did enjoy the tongue in cheek end to this sentence:

“ ….the next-richest naturally occurring source of helium-3 is arguably the surface of the Moon which has attracted interest from NASA and the U.S. Department of Energy - we believe that Minnesota will be a more reliable and economically viable option.”

A much better written news release than previously. Plenty in there to excite the shareholder: “ Pulsar is designing a targeted cleanout operation to clear the obstruction and fully unleash Jetstream #2’s capacity.”

Seems it would need a few upgrades to drill Darwin (not a central scenario at this point, obviously, but of great interest to those on the BOR board), but it’s plausible presumably, given its designed depth.

The release says that it’s for financing the drilling of “up to” ten appraisal

Back in 2009, Rockhopper raised £50m at 54p to fund the first Sea Lion exploration well. How time flies….

Thanks. I did see the video; but am a bit skeptical of his claims. I’d suggest closely reading this:

https://ceo.ca/content/sedar/PLSR-2025-05-28-interim-financial-statementsreport-english-1362.pdf

It would actually seem that they essentially have no cash left (as they had some $2.4m in trades and payables), and they’ve drawn down half of the lending facility in April and May. But, yes, I presume as you say they will try to get a great result from the flow test and then raise more cash. But I’ve sold most of my shares (albeit kept a few, to avoid FOMO), until I hear something more reassuring on their cash situation.

Do they have enough cash though? As of March 31, Pulsar actually had a negative working cash position of $851,000. Anyone have an idea of how much the clean-up and flow tests will cost?

The Oak Securities note that came out this morning (I don’t have a link) made it sound pretty good. It noted that Helium One’s Galactica well had a PSIG of just 10, compared with 122 and 151 for the two Jetstream wells.

It will be a while, I believe. I may be misremembering, but I thought that they won’t take samples until they start the flow tests—which haven’t begun yet. The down-hole testing they’ve been doing was different—that was to check reservoir properties. Happy to be corrected, of course…

I recall FOGL doing sometime similar years ago (namely, raising money shortly before a farm-out). It makes sense; the farm-in company doesn’t want to strike a deal with a company that may go bust before drilling even begins. That concern is now largely eliminated for Borders, and the level of dilution is about half what it would have been a few months back. At some point, though, they will need to start offering some concrete information on farm-out progress (otherwise it’s all just blather).

Very interested to see if there’s anything to back this up. It could just be a temporary blip, a proper re-rate (of the kind RKH seems to be seeing), or something with more substance (farm-in or something similar). Compelling viewing whatever the case.

I know. It does not specify that they will use the same rig though. It really doesn’t matter either way. I’m not on these sites to indulge in petty back and forths. If they use the same rig; great. I’m just sharing my experience garnered from investing in various helium companies for the past three years. Last time I post on here though

In my experience with helium companies, a different rig is typically used for drilling and flow testing . That was the case, as I recall, with the Jetstream 1 initial well as I recall (although road conditions were a factor in that instance, so there was a ln enforced gap). But happy for it to be the same rig of course

I hold a fair few on TSX, but have now bought a few here (almost as arbitrage). The helium potential here is enormous, and it’s surely only a matter of time before the market wakes up to Pulsar’s potential. I would add, though, that flow rate is absolutely critical here, and that will require another rig (after Jetstream 2 is drilled).

As I recall, it cost Desert Mountain Energy around $20m-30m to build their plant. But it depends on size of facility, gas composition, etc of course….

Regarding the comment: “ suspect FIG may be seeking tax on the $231mln carry that rkh did receive but that's speculation on my part and may or may not be the case.”

You may be aware, but RKH paid tax on that portion many years ago. I’ve followed this company for years and years, so cannot recall the exact document that info is contained in, but I can assure you that tax has already been fully paid.