PetroSun Inc (PSUD)

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PSUD - Potential Reserve Value: $ 128.1 Billion

Lithium - $ 72,165,600,000.
Liquid Natural Gas - $ 14,370,000,000
Helium - $ 41,650,000,000

This excludes any reserve value from Holbrook Basin Arizona which could increase this number substantially. There is not enough released information to estimate Holbrook at this time.

In the last 12 months there have been some significant changes in the holdings of PetroSun, in addition to changes in the market prices of both lithium and natural gas. Helium continues to be in extremely short supply, but determining its price in the market is more complicated because it is not listed on any of the commodity exchanges.

PetroSun acquired a significant portion of United Helium in 2021, increasing the total Helium wells in Holbrook to 5. The company also acquired 4 additional lithium concessions in the same geographic area as San Judas I and II, after core samples of the first 150’ of those properties showed significant lithium reserves. We are awaiting additional reserve information on all 6 lithium concessions. Additionally, in 2021 PetroSun acquired significant increases in 10 projects or properties of the corporation from a significant investor.

In light of the $ 15 million stock purchase agreement and the $ 9.1 million debt equitization by significant investors, the stability and viability of the business appears to be better than before. The current market price of the stock is significantly undervalued based on all of these factors.


SAN JUDAS I AND II LITHIUM

136,444,240 tons of zeolite ( per 150’ sample ) containing 1763 ppm lithium

Covert ppm to %. Lithium at 1763 ppm = 0.1763%
136,444,240 tons X 0.1763% = 240,552 tons of Lithium per 150’

240,552 tons X 2 (Convert to 300’ depth) X $50,000 ( U.S.) per ton = $ 24,055,200,000 potential reserve value in the U.S. market.

240,552 tons X 2 (Convert to 300’ depth) X $ 74,955 ( China ) per ton = $ 36,080,394,480 potential reserve value in the Chinese market.

Source: https://oilprice.com/Energy/Energy-General/Rising-Lithium-Prices-Could-Derail-The-EV-Boom.html ( 2/24/2022 )
Source: PetroSun press release ( 6/14/2021 )
Source: Price in China https://tradingeconomics.com/commodity/lithium
460,500 yuan per ton. Convert 473,500 yuan to dollars: $ 74,955.00. (2/25/2022)

With the significant increase in lithium prices these new calculations help provide better insight into potential lithium reserve values. If ppm in the lower 150’ sample are within the range of the upper 150’, then these numbers give us some indication of potential. Initial sampling of San Judas I and II was to a depth of 150’, subsequent samples were taken to 300’ in the concessions.

With the additional 4 lithium concessions in the same area, if the volume and ppm of lithium are within a reasonable range of the San Judas I and II the potential lithium reserve value could be as high as $ 24,055,200,000 X 3 = $ 72,165,600,000.

All of these estimates are clearly heavy with assumptions. But this at least gives us some view of potential. It also provides you with base numbers to adjust the estimates up or down based on your own assumptions. Keep in mind the market prices are accurate based on the sources listed, as are the volume and ppm in the 150’ samples in San Judas I and II. Whatever the actual samples and volume are for the 4 new concessions and the lower 150’ of San Judas I and II, these are some big numbers, with lithium demand doing nothing but going up.


GOLDEN EAGLE LIQUID NATURAL GAS

Minimum Expected Reserves 3 trillion cubic feet

Source: Castle Placement – Arizona Energy financing document published on Castle Placements website

Covert 3 tcf to mcf = 3,000,000,000 mcf
3,000,000,000 mcf X $ 4.45 per mcf = $ 14,370,000,000. Minimum Expected Value

Source: https://tradingeconomics.com/commodities
Natural Gas MMbtu to mcf ( MMbtu/ 1.037= mcf )
LNG Price $ 4.6160 per MMbtu / 1.037 = $ 4.45 per mcf ( 02/24/2022 )


HELIUM

HOLBROOK BASIN ARIZONA

AEP 17-1 Disclosed 2.29 bcf X $ 612.50 per mcf processed

Convert 2.29 bcf to mcf = 2,290,000 mcf
2,290,000 mcf X $ 612.50 = $ 1,402,625,000

Source: PetroSun press release July 5, 2017

This is only for one zone of one well. No additional reserve estimates have been disclosed. This estimated value is not included in the total listed above.

PetroSun has based on press releases in 2021, 5 completed commercial wells in Arizona with one more in process of completion, Manuel Seep 2-1, and one more potentially planned in the next 90 days, Chambers Anticline 32-1. The significant helium percentages in Holbrook lead to the potential of very significant reserves in Arizona.


GOLDEN EAGLE UTAH

Minimum Expected Reserves 68 billion cubic feet

Source: Castle Placement – Arizona Energy financing document published on Castle Placements website

Convert 68 bcf to mcf = 68,000,000 mcf
68,000,000 mcf X 612.50 = $ 41,650,000,000 Minimum Expected Value

Source: $ 612.50 price per mcf processed helium. Desert Mountain Energy website, Cormark analyst’s report. Cormark follows a number of companies in the Helium E&P market.

Spot Market prices for processed helium have been reported significantly higher than $ 612.50 per mcf.

This statement is my personal opinion and does not represent the opinions of any other person. It is an opinion from a lay man and is given to pique your interest and not to influence any action on your behalf.