The Helium Thesis:
Invisible, Irreplaceable,
and Running Out

Most people think of helium and picture birthday balloons. That image could not be further from the reality of what helium actually is, or what it means to the global economy.

Helium is the second most abundant element in the universe. It is also, paradoxically, one of the scarcest and most difficult-to-replace resources on Earth. Once released into the atmosphere, it escapes into space permanently. It cannot be manufactured. It cannot be meaningfully recycled at scale. And the geologic conditions required to trap it commercially are extraordinarily rare.

We are, as an industrial civilization, slowly burning through a finite and irreplaceable resource. The systems that depend on it are becoming more critical, not less, with every passing year.

Why Helium Cannot Be Replaced

Helium's unique physical properties, including extreme inertness, the lowest boiling point of any element, and exceptional thermal conductivity, make it irreplaceable in a growing list of critical applications. This is not a commodity story about pricing cycles or temporary supply disruptions. It is a structural story about a resource the modern world cannot function without.

The semiconductor industry alone has seen its share of global helium consumption grow from roughly 6% in 2015 to an estimated 10 to 12% by 2025, driven almost entirely by the expansion of advanced chip fabrication. A single EUV lithography fab consumes approximately 500,000 cubic feet of helium annually. The AI infrastructure buildout, including data centers, GPUs, and advanced chips, runs on helium. And yet most investors have never thought about it once.

A Supply Chain Built to Break

Global helium supply is dangerously concentrated. Qatar alone produces roughly one-third of the world's helium, extracted as a byproduct of LNG processing at its Ras Laffan Industrial City. The United States, historically the dominant producer through its Federal Helium Reserve near Amarillo, Texas, effectively exited that role when Congress mandated the reserve's wind-down, a decision that removed approximately 30% of government-managed global supply from the market.

The structural fragility of this supply chain is now playing out in real time. In late February 2026, Iranian strikes on Qatar's energy infrastructure forced QatarEnergy to halt production at Ras Laffan, taking an estimated one-third of global helium supply offline. Spot prices surged 40 to 100% within days, depending on the market. The International Energy Agency and multiple Wall Street banks flagged helium as one of the most acute commodity risks stemming from the conflict.

This is the fifth major helium shortage since 2006. Each one has been driven by the same fundamental vulnerability: too few sources, too much geographic concentration, and a world that keeps finding new ways to need more of it. New supply is coming, but exploration-to-production timelines are measured in years, and demand is not waiting.

Enter Pulsar Helium and the Topaz Project

The Topaz Project, located in northern Minnesota approximately 100 kilometers north of Duluth, is one of the most significant primary helium discoveries in North America in decades. Pulsar Helium holds exclusive leases over the project area and is the first mover in what appears to be an entirely new helium province.

What makes Topaz extraordinary is not just the presence of helium. It is the grade, the geology, and what the drilling program has revealed over the past two years.

Helium concentrations exceeding 0.3% are generally considered potentially economic by industry standards. Topaz is producing flow-tested concentrations of 5.6 to 8.1% helium-4, roughly 20 to 27 times the economic threshold. The gas flows naturally to the surface without hydraulic fracturing, associated water, or hydrocarbon contamination. Approximately 85% of the raw gas stream is marketable, comprising helium-4, CO2, and a discovery that has fundamentally changed the character of this investment.

The Helium-3 Dimension: A Discovery Within a Discovery

In October 2025, Pulsar disclosed the presence of helium-3 in the Topaz gas stream. This was not a minor footnote. It was a discovery that reframes the entire investment case.

Helium-3 is among the rarest and most valuable isotopes on Earth. NASA actively funds lunar helium-3 extraction programs, given that the Moon's regolith contains estimated concentrations of 1.4 to 15 parts per billion. Pulsar's Jetstream #1 well has produced sustained helium-3 concentrations of up to 14.5 parts per billion, comparable to the Moon, and accessible from a road in northern Minnesota.

Three independent federal and world-class research laboratories, working blind of each other, arrived at virtually identical results. The isotopic ratio is consistent across all samples, indicating a single, stable source in the subsurface. Helium-3 commands prices of approximately $2,500 per liter in specialized markets and up to $18.7 million per kilogram in some defense and research applications. Its critical uses include neutron detection for nuclear security, quantum computing cryogenics, and as a potential fuel for next-generation fusion reactors.

No commercial separation technology currently exists at scale. But the U.S. government is engaged, and Pulsar is actively working with potential collaborators. This is an option embedded within the primary thesis, not necessary for the base case, but potentially transformative if realized.

The Investment Case: Why BGCP Is Positioned Here

BGCP participated in an early private placement in Pulsar Helium as an accredited investor. This was not a speculative bet on commodity prices. It was a deliberate, research-driven position in what we believe is a genuinely world-class resource discovery at an early stage, in a commodity with structural supply constraints and irreplaceable industrial demand.

The investment thesis rests on five pillars:

The near-term catalyst calendar is significant. Flow testing and pressure data from Jetstream wells are expected through spring 2026. A resource update follows in June through July 2026, with the company's first-ever economic study to follow shortly after. This is the transition that separates exploration-stage companies from development-stage companies, and it is where value historically inflects.

This is not a risk-free investment. Pulsar is a small-cap exploration company with all the associated risks: drilling uncertainty, capital requirements, commodity price exposure, and the challenge of commercializing a novel helium-3 separation technology. We hold it sized accordingly within our Asymmetric Resources sleeve, where volatility is expected and patience is the edge.

What we do not believe is uncertain: the world needs helium. The world cannot replace it. The supply chain is fragile in ways that are now visible to everyone watching the Middle East. And the Topaz Project in northern Minnesota may be one of the most significant new helium discoveries in North America in a generation.

We believe Topaz is one of those investments. We are watching it closely, well by well, quarter by quarter, with the patience that this kind of asymmetric thesis demands.

This memo is for informational purposes only and does not constitute investment advice. The author holds a position in Pulsar Helium Inc. Past performance is not indicative of future results. All resource-stage investments carry significant risk including total loss of capital. Readers should consult a qualified financial advisor before making investment decisions.