With helium running low, demand on the rise, and prices which could soar in the squeeze, Avanti is out in front of this game with the exploration advantage. They plan to spud their first well in by the end of 2021.
Why? Because we are now officially out of our helium comfort zone. Until now, we’ve always had the U.S. Federal Helium Reserve (FHR) in Amarillo, Texas, to rely on. Since the Cold War, the Fed has been stockpiling helium, providing some 40% of the world’s supply. But we’ve used most of that up, and in September, the reserve will be shut down , while the existing price ceiling will disappear.
Without new discoveries, we’ll fall short of what big tech, medicine, and space exploration need, and prices could skyrocket. That’s why Avanti has jumped on three major acquisitions.
In just the past month, Avanti has made three key acquisitions–two in Alberta and one in Montana–that it hopes will put it on track to become the next potential leader in new helium discoveries.
First, on March 29th, Avanti acquired the license for over 6 ,000 acres from the Government of Alberta in highly prospective helium territory. A previously abandoned natural gas well on the property showed 2.18% helium and 96% nitrogen in the Cambrian and 0.3% helium and up to 98% nitrogen in the Devonian.
Offsetting wells in the area have multiple tests in Cambrian and Devonian intervals with up to 1.79% helium and 83-93% nitrogen content, and drill stem tests (DSTs) indicate reservoir quality rock in the Cambrian and Ordovician zones.
Next, on April 16th, Avanti made its move on ~ 12,000-acre prospective helium land package, this time in Montana, with a letter of intent to acquire. This is a large land position in the northern part of Montana, and it’s right near–and on-trend with–an active, nitrogen-rich helium drilling area in Saskatchewan.
Then, on May 10 th , Avanti ( AVN.V ; ARGYF ) acquired an additional strategic license in Alberta for ~2,500 acres that is highly prospective for potential helium extraction. The newly acquired property resides over an area with a closed structural high that is ideal for trapping helium and multiple helium shows have been identified in and around the property with shows up to 2%.
With helium running low, demand on the rise, and prices which could soar in the squeeze, Avanti is out in front of this game with the exploration advantage. They plan to spud their first well in by the end of 2021.
About Avanti Energy
Avanti Energy Inc. is a Canada-based resource company. The Company is focused on the exploration, development and production of helium across western Canada and the United States. The Company’s principal project is a 90% interest in the Montana Project. … It also holds a 100% interest in Knappen Project.
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