Avanti Energy, the Vancouver-based company, announced this Thursday it has expanded its land acquisitions in Montana, aimed at helium extraction. Company entered into an agreement to acquire 15 new Montana sections, that add to the ones acquired earlier this year.
Firstly, the new acquisitions have all multiple structural closures; consequently, they are highly prospective for helium potential. According to the company’s statement, the new sections contain several closed structural highs; which are ideal for the trapping of helium, that exhibit 80m to 200m of relief.
Secondly, as the land acquired before, the new ones are in the Denovian and Cambrian formation; and have excellent reservoir quality.
Thirdly, the north of the acreage is near Canada; specifically, to Saskatchewan; which is also a special land for the company; as the wells in Canada, adjacent to Montana, show helium in 2% and nitrogen 96%.
Moreover, the company filed its Letter of Intent for the Montana lands back in April; then, the right were for 12,000 acres, located in the North-Central region of the state. The acquisition was part of the company’s growth strategy and to create a solid helium supply chain.
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Avanti Energy to keep looking for opportunities in the U.S. and Canada
In addition, in June, the company agreed to grow the acreage to 50,000 acres, which added to the 12,000 acres purchased before. Today’s announcement grow even further this series of acquisitions, and consequently, the potential of the company to produce helium.
Furthermore, 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.
On the other hand, about the growing presence of the company in the state, Chris Bakker, Avanti Energy CEO, said. “The acquisition of these sections is very exciting and fits within our strategy of acquiring targeted land packages; that are highly prospective for helium development.”
He also remarked. “This property is a bolt-on to our Greater Knappen core land package and adds to the multiple closed structural highs we have already assembled.”
Finally, the company will continue to evaluate multiple opportunities across Western Canada; and also the United States to build an industry-leading helium company; with a premier portfolio of prospective lands.
