Avanti Helium (TSXV: AVN) is moving forward with its plan to produce helium from its Greater Knappen property. The company this morning indicated it has begun the process of securing land to house its helium recovery plant.
40 acres of land have reportedly been secured in Liberty County, Montana, where Avanti intends to construct a helium recovery plant to process raw gas from its two wells in the area. The location of the plant is set to be three to four miles from the Sweetgrass pool, with easements already secured from the wells to the proposed site of the recovery plant.
The lease for the property is for an initial 25 years, with the option to renew.
The recovery plant itself meanwhile is currently in the process of proposal review, with Avanti reportedly having received several proposals from midstream and helium recovery unit manufacturers. Avanti currently intends to have a recovery unit operating in the fourth quarter of 2023.
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Tolling arrangements are also in place, in line with recoveries planned to begin in the fourth quarter. A tolling agreement has been entered with Paradox Midstream, which is good for 150 Mcf/d of helium gas, which is to be liquified at the Lisbon gas plant, found in southern Utah.
Avanti has previously indicated that the two wells drilled in the region contain helium content of 1.15% to 1.2%, with 97.5% nitrogen. A resource estimate released earlier this year meanwhile estimated that the unrisked P50 Sweetgrass Pool contingent helium resource sits at 221 MMcf.
Avanti Helium last traded at $0.50 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
