Avanti Energy announced this Friday it entered into a Letter Of Intent (LOI) to purchase highly prospective lands in Montana.
Firstly, the LOI includes a group of land holders to acquire the helium rights in 12,000 acres of the land, located in North-Central Montana.
Secondly, the land would fit within Avanti Energy’s strategy to build a portfolio of land holdings with high potential for helium development.
Thirdly, located in North-Central Montana, the land is in close proximity to an active drilling area in SW Saskatchewan; which has nitrogen-rich helium tests in Cambrian to Devonian zones.
Moreover, with 2D and 3D seismic data, the company mapped the land and found several of structures to be highly prospective for helium; which would be trapped in sedimentary formations.
In addition, multiple gas analyses from shallow Cretaceous gas zone demonstrated upward migration of helium; with a potential for deeper helium-rich zones; similar to those found in Saskatchewan and other areas across the region.
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Avanti Energy to close the transaction by June
Consequently, the purchasing of the land is pivotal for Avanti in its push for helium prospects; and a high nitrogen content portfolio.
Furthermore, Genga Nadaraju, Avanti Energy’s Vice President, Subsurface Geology, said. “Avanti is excited to add these properties into our portfolio of helium-prospective assets; and also, to continue to expand our land position in the United States.”
He also remarked. “This asset is in line with Avanti’s focus on helium prospects with high nitrogen content. Also, early looks at the 2D and 3D seismic of the area show a series of basement highs; that suggest helium may be trapped in overlying reservoirs.”
In addition, Avanti Energy is in the process of finishing off the legal aspects of the purchase; as well as the diligence of the project. When completed, Avanti will enter into a farm-in agreement with the property owners.
Finally, the final terms of the transaction will be set in the farm-in agreement, which is expected to happen around June 20201.