Avanti Helium Corp. are pleased to provide an operational update on its Sweetgrass Project within its Greater Knappen asset.
Avanti is pleased to announce it has secured 40 acres of land in Liberty County, Montana which is expected to be the site of the Company’s Helium Recovery Unit (HRU) that will process raw gas from the WNG 10-21, and WNG 11-22 wells. The site is located ~3-4 miles from the Company’s Sweetgrass pool and is adjacent to an all-season public road. Avanti has signed a 25-year lease with an option to renew and has also secured all pipeline easements from the wells to the site. The lease agreement is subject to customary closing conditions.
Helium Recovery Plant
In addition to securing the land, the Company has completed the review of proposals from several midstream and Helium Recovery Unit manufacturers. The Company expects to move forward and enter into a definitive agreement with respect to development of the HRU in the coming weeks. The Company is targeting to have the HRU in place and on stream in Q4 2023.
Liquefaction Tolling Agreement
The Company is also pleased to announce it has signed a Helium liquefaction tolling agreement with Paradox Midstream LLC for 150 Mcf/d of helium gas to be liquefied at Paradox’s Lisbon gas plant located in Southern Utah. The liquefaction tolling agreement will commence upon completion of the Helium Recovery Unit, expected in Q4 2023.
“Having drilled one of the most significant helium wells in North America in decades, Avanti’s focus has shifted to extracting best-in-class returns from production and commercial arrangements,” commented Chris Bakker, Avanti CEO. “The announced agreements progress our plan to market 99.999 percent pure liquid Helium. Negotiations on the remaining agreements are progressing well and we expect to have additional information available to shareholders in the coming weeks.”
For more information visit www.avantihelium.com
