Pulsar starts drilling to deepen Jetstream 1 appraisal well

(Sharecast News) - Helium project developer Pulsar Helium has started drilling to deepen the Jetstream 1 appraisal well at its flagship Topaz Project in Minnesota, it announced on Monday. The AIM-traded firm said the drilling operation started on 2 January, with plans to extend the well by at least 1,640 feet to a total depth of 3,840 feet.

It said the operation was expected to conclude later this week.

Once drilling was complete, the company said it would conduct open-hole wireline logging to collect data on the well's characteristics.

Flow testing would follow at a later stage after the well pressure was stable.

Pulsar said it was using the same Capstar crew and rig that drilled the original Jetstream 1 well in February last year.

Preparations were also underway for the Jetstream 2 step-out well, with the drill pad complete and the conductor rig scheduled to install the conductor by 8 January.

The Jetstream 1 deepening and subsequent testing were described as critical steps in advancing Pulsar's Topaz Project, which was aiming to develop a key helium resource in the US to meet growing demand for the essential industrial gas.

"Deepening of the Jetstream 1 well has commenced and is progressing extremely well," said president and chief executive officer Thomas Abraham-James.

"The assessment of the full height of the previously discovered high helium concentration reservoir is a key stage in progressing Topaz."

Abraham-James noted that previous drill data obtained last February indicated that exploration had only reached the top of the reservoir, and that it could extend for a further 1,640 feet.

"Immediately upon completion we will run down-hole tools, and I look forward to keeping the market updated with our progress."

At 1057 GMT, shares in Pulsar Helium were up 0.17% at 29.55p.

Reporting by Josh White for Sharecast.com.