By Pat Price
Avanti Energy Inc. (TSXV:AVN) (OTC:ARGYF) has assembled an expert team of former oil and gas employees, including eight people from the former Encana Corp. Several of those employees were part of the team during the early stages of the discovery of the Montney Formation, one of the premier natural gas formations in North America, and now they’re leading Avanti Energy to new discoveries of helium reserves.
“One of the advantages of bringing people together from one company is that we know how they all fit together,” stated Chris Bakker, Avanti Energy’s CEO and director. “They all love working together. There is not a week that goes by where people don’t get excited. As much as there is a similarity to oil and gas, it is also brand new.”
Helium is usually found deep in reserves and traps in abandoned oil and gas wells. Avanti Energy is focused on the discovery, development and production of helium. Avanti has leased 7,000 acres in southern Alberta and is negotiating with landowners for another 12,000 acres in Montana.
Recently, Avanti Energy acquired a licence from the Alberta government to lease another 2,500 acres. The property has a high prospective for potential helium extraction. Numerous wells have displayed enriched helium of up to two per cent (commercial helium varies from .3 per cent to one per cent) with a high nitrogen content of approximately 95 per cent. The high concentration of nitrogen is often associated with producible quantities of helium. These wells could contain up to $100 million worth of helium.