VANCOUVER, BC, June 14, 2021 /CNW/ - Avanti Energy Inc. (TSXV: AVN) (US OTC PINK: ARGYF) (the "Company") is pleased to announce that it has entered into binding agreements on two additional properties totalling ~50,000 acres of land in Montana. The properties are highly prospective for the potential discovery of helium, and the Company is moving forward to complete final due diligence on the acquisitions.
The properties add ~50,000 acres to Avanti's existing helium-prospective properties.
The properties feature several closed structural highs, ideal for the trapping of helium, that exhibit 70m to 170m of relief.
Surrounding wells have helium shows in multiple Devonian and Cambrian targets with helium percentages of up to 2%.
Area helium shows are associated with favorably high nitrogen percentages of up to 96%.
Area well log and core analyses indicate excellent reservoir quality in Devonian and Cambrian target intervals.
After a detailed evaluation process, the Avanti team moved immediately to acquire the new properties. Avanti's geologic models suggest the properties contain several four-way closed structures with 70m to 170m of relief. These dramatic rises in subsurface elevations can create ideal reservoirs for trapping and accumulating helium and will be the targets for Avanti's exploration and development plan. The evaluation process has indicated the potential for excellent reservoirs in multiple zones, with several existing analogue wells showing up to 2% helium and 96% nitrogen in both the Devonian and Cambrian formations. The agreements are conditional only to Avanti satisfactorily completing the due diligence on the land rights and ownership, which is already underway and targeted for completion in July 2021.
Chris Bakker, Avanti Energy CEO, stated, "The acquisition of these properties is a tremendous advancement for Avanti and fits perfectly within our strategy of acquiring targeted land packages that are highly prospective for helium development. We are expanding our helium portfolio to cover over 60,000 acres and we believe properties on both sides of the border have the potential to become company makers in the years ahead." Mr. Bakker continued, "This particular land package has multiple closed structural highs and very promising local analogue well results. The detailed analysis and assessment completed by our world-class technical team indicates strong potential for economic development of helium."
Avanti continues to evaluate multiple opportunities across Western Canada and the United States to build an industry-leading helium company with a premier portfolio of prospective lands.
About Avanti Energy
Avanti Energy is focused on the exploration, development and production of helium across western Canada and the United States. Avanti's professional oil and gas exploration and production team is actively targeting untapped potential helium reserves to help meet the increasing global demand for an irreplaceable and scarce element critical to advanced technology, medical and space exploration industries. For more information, please go to the Company's website at www.avantienergy.com.
The information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Avanti Energy Inc.
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