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Avanti Energy Inc (4)
Symbol AVN
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Close 2022-04-13 C$ 1.58
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Avanti Energy finishes completions at Flathead zone

2022-04-13 12:22 ET - News Release

Mr. Chris Bakker reports


Avanti Energy Inc. has finished completions on the Flathead Cambrian zone on its WNG 11-22 helium well in Greater Knappen, Montana, the first of three prospective zones. Completions and testing of the WNG 11-22 well's two Souris River zones, up-hole from the Cambrian, are continuing and the company expects to publish results in the coming weeks.

The company completed an acidization and clean-up process of the Flathead Cambrian zone, after which the well peaked at over four million standard cubic feet per day for six days on a choke at a flowing pressure of 350 pounds per square in gauge.

"The testing results of the WNG 11-22 well's Flathead Cambrian zone is further evidence of the potential of Avanti's Greater Knappen property," commented Chris Bakker, Avanti chief executive officer. "To have these results from only our second well is an incredible outcome and testament to the quality of our entire team."

Avanti has contracted IHSMarkit to analyze the flow and build-up test, and McDaniel & Associates to evaluate the reservoir's resource potential. Preliminary lab results show the gas composition of the Cambrian zone to be 97.5 per cent nitrogen, 1.1 per cent helium, 1.1 per cent methane, 0.3 per cent Co2 and trace amounts of other hydrocarbons. With the primary gas being nitrogen, the company is thrilled to have discovered a green helium play; as nitrogen is not a greenhouse gas, it can be safely vented into the atmosphere with no environmental impacts.

Based on these results, the company is pursuing a facility design based on an inlet production rate of five million cubic feet per day of raw gas, resulting in an estimated 55,000 cubic feet per day of net helium. A review of publicly available data shows the first and second most productive helium wells in Canada are producing at approximately 60,000 cubic feet per day and 50,600 cubic feet per day, respectively.

"With the Amur plant in Russia remaining off-line for the foreseeable future and the suspension of production at the U.S. government (BLM) plant in Amarillo, Tex., the broader helium market continues to show incredibly favourable conditions," continued Mr. Bakker. "With wholesale prices exceeding $600 (U.S.)/mcf and retail prices as high as $2,000 (U.S.)/mcf, our focus is shifting to facilities engineering and commercial agreements with a goal of realizing cash flow as quicky as possible."

The company has tendered an RFP to several engineering firms to proceed with facilities design with the goal of bringing the WNG 11-22 well into production as quickly as possible, and proceeding with drilling plans for appraisal wells to determine the size of the reservoir on the WNG 11-22 well.

About Avanti Energy Inc.

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.

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