Oak Securities sets 63.3p price target for Pulsar Helium, based on “world-class discovery”
Shares in Pulsar are currently trading at around the 26p mark.
Oak highlighted in particular the success of Pulsar’s Jetstream #2 well.
“The well was drilled to a target depth of 5,638 feet and discovered a gross thickness of 3,178 feet of helium bearing reservoir,” said the Oak Securities research.
“Mud logs had concentrations of helium at 3.5%. This appraisal well substantially increases confidence that Pulsar Helium has a world-class helium discovery. We maintain our target price of 63.3p per share.”
The broker argued that with two wells now successfully completed, risks for investors had been reduced, “allowing for further upside.”
The initial grades encountered looked high by global standards, but could go still higher, as there was some dilution during the drill process.
A lab analysis will be undertaken to assess the true concentrations which we would hope would be close to the 14.5% seen at the initial discovery,” added Oak.
“This is well above the widely accepted economic threshold of 0.3% making this a world-class discovery. This appraisal well demonstrates that the management has a good understanding of the geology which should give investors confidence in future drilling.”
In February there will additional testing at Topas, including optical televiewer and high-definition spectroscopy, and pressure and flow testing is expected in March.
Oak added that it had used “a very conservative helium price of US$450/mcf” in its calculations.
View from Vox
It’s a bullish assessment from Oak, but there’s no denying that Pulsar has hit the ground running in 2025, and that two successful wells do take the company significantly forward. The next crucial news items will be laboratory confirmation of the grades, and the subsequent publication of an updated resource. Pulsar’s chief executive Thomas Abraham-James has called the work the company has done at Topaz “the most significant new primary helium discovery in North America,” and he may well be right.
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