Helium is a big resource in the lands of Montana; several exploration and production projects for helium are currently under development in the area. The newest announcement in the matter is that Avanti Energy agreed to acquire 50,000 acres of land in the state to further push helium production.
Firstly, the properties are highly prospective for the potential discovery of helium; according to the company’s statement, this new portfolio of lands will add to the already existing helium properties of the company.
Secondly, the lands feature several closed structural highs, ideal for the trapping of helium, that exhibit 70m to 170m of relief. Also, in surrounding wells the element shows in multiple Devonian and Cambrian targets with helium percentages of up to 2%.
Thirdly, the area also shows favorably high nitrogen percentages of up to 96%; which is in turn highly prospective of helium. Area well log and core analyses indicate excellent reservoir quality in Devonian and Cambrian target intervals.
Moreover, the company’s geologic models suggest the properties contain several four-way closed structures with 70m to 170m of relief. Such values suggest ideal reservoirs for trapping and accumulating of the element.
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Helium has strong potential in Montana
Consequently, those areas are going to be targeted by the company first. As for now, the company also highlights that 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.
On the other hand, the acquisition agreements are 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.
In addition, 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 the element development.”
Finally, he said. “This particular land package has multiple closed structural highs and also 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.”