- Avanti Energy Inc. (AVN) has received a resource estimate for its WNG 11-22 helium well and underlying structure in the Greater Knappen Property in Montana
- The estimate is expecting 187 million cubic feet (MMcf) of net recoverable helium gas
- The low and high estimates of the resources are 66MMcf and 374MMcf
- The contingent resources have been risked to account for a 90 per cent chance of commerciality
- Avanti is proceeding to drill an appraisal well, WNG 10-21
- Avanti Energy Inc. (AVN) is up 2.70 per cent trading at $1.14 per share as of 4:01 p.m. ET
Avanti Energy (AVN) has received a resource estimate from the Greater Knappen Property in Montana.
The MRE estimates 187 million cubic feet (MMcf) of net recoverable helium gas for its WNG 11-22 helium well and underlying structure.
The company stated this volume represents the best estimate of the “unrisked” contingent resource. The low and high estimates of the resources are 66MMcf and 374MMcf of recoverable helium gas.
Based on the Flathead Cambrian Sandstone zone test data from the WNG 11-22 well, the best-estimated contingent resource volume of 77MMcf of net helium is assigned to the well in the category development-pending. Avanti stated it will drill two follow-up wells in the structure beneath WNG 11-22 and will look at recovering 55MMcf of net helium.
“The initial assessment of the Flathead Zone contingent resources… provides the confidence needed to plan additional appraisal and development wells with the potential to increase resource estimates… to move forward with facilities planning and commercial arrangements,” Chris Bakker, Avanti’s CEO, said.
The contingent resources have been risked to account for a 90 per cent chance of commerciality.
The company is proceeding to drill an appraisal well, WNG 10-21, approximately one kilometre west of WNG 11-22 and 50 metres down structure. The appraisal well will help define the edge of the gas pool and will also gather additional information about the Souris River zones in support of an evaluation plan to recomplete the zone in WNG 11-22.
“Having now penetrated two of the ten identified potential structures in Greater Knappen, the Avanti team is very excited about the prospects of developing this pool and testing the remaining opportunities,” Bakker said.
Avanti Energy Inc. (AVN) is up 2.70 per cent trading at $1.14 per share as of 4:01 p.m. ET.