Business
Avanti Signs Purchase and Sale Agreement to Acquire Italian Gas E&P Company
Vancouver, British Columbia--(Newsfile Corp. - January 6, 2015) - Avanti Energy Inc. (TSXV: AV...
About this update from Avanti Helium Corp.
[{"type":"text","content":"Avanti Signs Purchase and Sale Agreement to Acquire Italian Gas E&P CompanyVancouver, British Columbia--(Newsfile Corp. - January 6, 2015) - Avanti Energy \nInc. (TSXV: AVN) (\"Avanti\" or the \"Company\") is pleased to announce that it has \nsigned a purchase and sale agreement (\"PSA\") with Dove Energy B.V. (\"Dove\") for \nthe purchase of CMI SpA (\"CMI\") (the \"Acquisition\"), an Italian corporation that \nowns a 90% working interest in a natural gas permit covering 35.72 square \nkilometers onshore in Central Italy, including an application for the conversion \nof the natural gas discovery in the permit into an exploitation concession (the \n\"Project\"). The permit area includes two new wells, along with other older \nwells, that have fully delineated the field limits and reserves. The two new \nwells tested combined production in excess of 20,000 Mcf/d (3,333 barrels of oil \nequivalent (boe)/d). CMI has Net Proved Reserves of approximately 6.4 million \nboe; and Net Proved plus Probable Reserves of 7.5 million boe. These figures are \nbased on a detailed independent reserve report from DeGolyer & MacNaughton.\nUnder the terms of the PSA, the Company is acquiring CMI for a \ntotal purchase price of approximately US$5.78 million, including US$1.53 million \nin cash and US S$4.25 million in common shares of the Company. The implied \ntransaction valuation multiples are US$0.90 / boe of Proved Reserves; US$0.77 / \nboe of Proved plus Probable Reserves.\nUpon the closing of the transaction, the Board of Directors of \nAvanti (the \"Board\") will appoint Mr. Mario Panebianco as an additional \ndirector. Mr. Panebianco is the principal owner of Dove and a recognized oil and \ngas professional and resident in Italy. Through a separate company, Mr. \nPanebianco owns the remaining 10% working interest in the Project. \nThis Acquisition is in line with Avanti's strategy of acquiring \nand developing high-quality assets with outstanding economics. Natural gas in \nItaly has s been decoupled from oil, with current pricing in the range of $US \n9.00- 10.00 per mcf. The process already begun by CMI to convert the \nexploration permit into an exploitation concession and to place the field on \nproduction, will be augmented by the international development expertise of \nAVN's management team. Additionally, the recently ratified \"...