For context, the company has 5.5 million acres, but a risked reserve report shows the land holds approximately 20 bcf of helium. In November, North American Helium was able to raise $127 million. With their substantial acreage and potential for fast payback, Avanti should have little trouble getting early inventors in. The most exciting thing: potential for very fast payback.Īvanti estimates that if their wells produced~55,000 cubic feet of helium per day they would require just 104 days to fully pay back drilling costs. ![]() The Avanti team has spent the last 8 months assembling the land package, managing to put together a 69 thousand acre property they have dubbed 'Greater Knappen.' Avanti estimates a potential helium yield of 1.4-8.9 bcf from Greater Knappin, which is almost unbelievable as we shall explain shortly.Ī big reason why the Avanti ( AVN.V ARGYF) team may have had drilling success so quickly is due to the fact that they chose an area that appears pretty targeted with the right mineralogy for helium production. ( AVN.V ARGYF) has announced the completion of its first helium well in its initial three-well program in its 100%-operated Greater Knappen property that extends from Montana to Alberta, Canada-which could be one of the best prospects for securing future helium supplies.Īvanti's maiden helium well open-hole logging indicated five zones with reservoir characteristics (good porosity and low water saturation) suggesting further testing is warranted.ĭrill stem tests were also performed to high-grade zones for completions and two of the It's against this backdrop that early mover Avanti Energy Inc. ![]() Scientists have been forced to shut down their superconducting magnets for lack of helium…while refiners have been limited to drawing amounts well below their requirements since 2017.Ī helium supply crunch may be growing more critical with each passing day… and oil and gas executives are now said to be looking for this precious rarefied gas that is used for everything from rocket ships to computer chips. But the script may be playing out very differently with the latest commodity to fall on Wall Street's radar: helium.Īs one of the rarest yet most valuable and indispensable elements on our planet, the world is quickly coming to grips with one of the biggest supply squeezes of our times as severe helium shortages continue pushing prices up. This script has played out numerous times with commodities including cobalt, rare earths, vanadium, potash, graphite, and even marijuana. ![]() (NASDAQ: WPRT), Westinghouse Air Brake Technologies Corporation (NYSE: WAB), Shell plc (NYSE: SHEL), Chevron Corporation (NYSE: CVX). Mentioned in today's commentary includes: Magna International Inc. Soon thereafter, dozens or even hundreds of natural resource companies, both large and small, quickly "pivot" to said commodity and the next thing you know a commodity bubble ensues before, eventually, bursting. 16, 2022 /PRNewswire/ - Every few years or so, the investing universe gets word about a looming shortage of a certain-usually niche-commodity.
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