Investor Presentation - TSXV: AVN | OTC: ARGYF - Avanti Energy
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Investor Presentation TSXV: AVN | OTC: ARGYF
Disclaimer
This presentation has been prepared as of January 2021 for statements of historical fact, information contained beverage and alcoholic beverage markets, risks relating
(the “Presentation”) for information purposes only and herein constitutes forward-looking statements and to the inherent uncertainties and challenges present in
does not constitute an offer or solicitation to sell shares includes, but is not limited to, the (i) completion of, forecasting market and industry outlooks, regulatory
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or securities in Avanti Energy Inc or Terrelium Resources and the use of proceeds from the sale of shares being risks and uncertainties, risk relating to the ability of the
Crop. (“Terrelium Resources Avanti Energy” or the offered hereunder; (ii) the expected development of Company to enter new markets in a timely manner.
“Companies”) or any affiliated or associated company. the Companies' business, projects and joint ventures,
This presentation does not purport to contain all of the including the estimated timelines for achieving The information contained in this Presentation is
information about the business of the Companies. None milestones in connection therewith; (iii) execution of the submitted to the parties on a confidential basis, and
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of the information or analyses presented are intended Companies' vision and growth strategy, including with is for discussion purposes only and for the exclusive
to form the basis for any investment decision, and no respect to various jurisdictions in Canada and the United use of those persons to whom it is transmitted by the
specific recommendations are intended. Accordingly, States; (iv) sources and availability of financing; and (v) Companies, its directors, officer, and agents, and it is
this Presentation does not constitute investment advice identification of potential commercial and distribution not to be reproduced or used, in whole or in part, for
Avanti Energy - Investor Presentation
or counsel or solicitation for investment in any security. partners. Forward-looking statements are provided to any other purpose whatsoever without the express
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or subscription of, or any invitation or offer to buy or future so that they may use such beliefs and opinions as this Presentation. Although forward looking statements
subscribe for, any securities, nor should it or any part of it one factor in evaluating an investment. contained in this Presentation are based upon what
form the basis of, or be relied on in any connection with, management of the Companies believes are reasonable
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expressly disclaims any and all responsibility for any of future performance and undue reliance should not looking statements will provide to be accurate, as
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on any information contained herein, (ii) any error, uncertainties, which may cause actual performance looking statements contained in the Presentation are
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statements. Many of these risks are outside of the circumstances or management’s estimates or opinions
Certain information set forth in this Presentation contains Companies' control and include, without limitation, risks should change except as required by applicable
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statements” under applicable securities laws. Except qualified personnel, risks related to competition in the undue reliance on forward-looking statements.
2
We're going to be looking back and
thinking, I can't believe people just
used to fill up their balloons with it,
when it's so precious and unique
Peter Wothers - Cambridge University
- Chemist -
Why Helium
As a noble gas Helium is not combustible and has properties that make
it irreplaceable for industrial applications like fibre optic cables, data
centres, semiconductor manufacturing, medicine / MRI machines, cooling
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& cryogenics. Helium is the second most abundant element in the universe
but extremely rare on earth. Avanti is focused on developing large scale
projects to extract Helium deposit trapped within the earth.
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100 times more valuable than Natural gas Natural
Gas $2 per Mcf Helium $200-$400 per Mcf
Avanti Energy - Investor Presentation
Global shortage, it’s estimated the supply will not
keep up with the demand for the next 20 years
Canada has large reserves in the world. A handful
of producers are extracting helium in Saskatchewan
Industry demand CAGR of 11% each year through 2037
4
Fastest Growing Uses
MEDICAL INDUSTRY CRYOGENICS WWW ELECTRONICS
Helium is mandatory for MRI Helium is the only element that High Speed Internet, fibre optic Electronics & Semiconductors require
machines which require 800 can come close to reaching cables must be manufactured helium to be used at different stages
litres of Helium. Heliox mixtures in absolute zero. in a pure helium environment in the production process.
respiratory treatments.
MOBILE PHONE COMPUTERS CAR AIR BAGS
If a device contains a Helium filled hard drives offer 50% Helium is the gas of choice for
semiconductor, it must higher storage capacity with 23% effecting the near instantaneous
contain helium. lower operating power. deployment of airbags in cars.
Avanti Energy - Investor Presentation -5-
Fueling the High Tech Future
THE REACTOR HELIUM COOLING WORLD’S LARGEST FIBRE OPTIC CABLE
OF THE FUTURE PARTICLE ACCELERATORS DILUTION REFRIGERATOR MANUFACTURING
Superconducting coils are cooled with At the European Organization for Quantum computing relies on After fiber-optic glass is drawn into fine
helium They are used everywhere Nuclear Research (CERN), liquid incredibly low temperatures. strands, it is shielded with helium while the
strong magnetic fields are needed. helium also plays a central role. cladding is applied to prevent the newly
Goldeneye is IBM's internal formed glass surface from reacting with the
Wendelstein 7-X, the world's largest It is cooling the superconducting codename for the world's largest contaminants present in ambient air.
stellarator device which is used to magnets that keep particles on dilution refrigerator, which will
evaluate the main components of their track. CERN operates the house a future 1,000,000 qubit Helium can also be used during the
a fusion power plant, uses helium biggest "refrigerator" in the world. quantum processor. bubbling process for molten glass to
for cooling. improve refining since it has the fastest
bubble rise time of any gas.
Where is
Helium Found?
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Helium is found by drilling wells, similar to natural
TSX: AVN
gas. It is formed from radioactive decay of heavy
elements like Uranium and Thorium
Avanti Energy - Investor Presentation
Helium can be trapped deep under hard non-
porous rock where it cannot escape. Gravity can’t
trap helium from escaping the atmosphere
Our focus is on helium-bearing non-hydrocarbon
sources in Western Canada and Montana
Once helium is found it is purified by Cryogenic,
Membrane or Pressure Swing Adsorption
processes that can produce ultra-pure helium
7
U.S. Helium
Production
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The US is the world’s largest producer,
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accounting for roughly 40% of supply. However,
the US National Helium Reserve in Amarillo,
Texas, the world’s single largest source of helium
Avanti Energy - Investor Presentation
for the past 70 years, is now exhausted. Where
will the replacement helium come from?
Helium Stewardship Act Expires Sept 2021
requiring the BLM to auction off all remaining
Helium Reserves. BLM’s exit from the market will
eliminate the current price ceiling.
Canada is estimated to have the 5th largest
Helium reserves in the world, and they are
virtually untapped.
8
Historical Pricing
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Historical Crude Helium Prices
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US $/mcf
Avanti Energy - Investor Presentation
BLM Crude He Sale Prices (US $/mcf) Source:
BLM Auction Sale Prices (US $/mcf) Bureau of Land
USGS Grade A price estimates (US $/mcf) Management, USGS
9"In a world full of game players,
the only way to set yourself
apart is to be a game changer"
Matshona DhliwayoManagement Team
CHRIS BAKKER MBA GENGA NADARAJU DR. JIM WOOD CHAD LERNER
MBA, CEO VP – Subsurface PHD, Director - Geoscience Director – Land & Business Development
Chris Bakker has over two decades of Genga Nadaraju holds over two decades of James Wood has over 30 years of experience Chad Lerner has over 23 years of experience in many
experience in oil and gas, most recently diverse professional experience in the oil and as a geologist who specializes in reservoir aspects of energy exploration. He has extensive
working as a commercial negotiator with gas industry that includes asset exploitation, characterization. His Geoscience and Petroleum experience in commercial agreements, joint ventures,
Encana/Ovintiv for major facilities and strategic planning, investor relations, and Engineering research focus is on developing business development and land acquisition strategy. His
practical applications for enhanced evaluation experience has focused on junior and emerging energy
pipelines in the Montney gas play. His technical innovation. Most recently, she was
and economic development of gas and liquid companies having been involved in both private and
expertise includes all facets of Natural the lead technical advisor for the Montney hydrocarbons in conventional and unconventional public energy entities. Lerner is a graduate (1998) of the
Gas Exploration like land acquisition, gas field and has extensive experience in resource plays. Wood specializes in applied research University of Calgary, holding a Bachelor of Commerce
exploration, drilling, well production and natural gas Geology, Geophysics & Reservoir in Geosciences and Petroleum Engineering; his Degree with a major in Petroleum Land Management.
facility integration and construction. Chris Characterization. Nadaraju brings strong research has received over 100 publications and has
also has start-up experience taking a
tech gaming company from conception to
project management and organizational skills
with the ability to interact effectively with all
been cited over 1,300 times.
KEVIN MORISETTE
market as well as acting as an advisor for stakeholders within the organization, both P.GEO, Senior Geologist
start-ups. Prior to Avanti, Mr. Bakker co- internally and externally. CARTER CHALMERS
founded Terrelium Resources as a pure- A professional geologist with over 15 years of diverse
VP – Corporate Development exploration, development, and operational experience
play helium company.
ALI ESMAIL Carter Chalmers is a senior business leader across the Western Canadian Sedimentary Basin. Prior
with over a decade of experience in business to joining Avanti Energy, Kevin was previously with Penn
ROB GAMLEY P.ENG, VP - Engineering
development and corporate development, include West Exploration and Gain Energy.
Ali Esmail has spent the past 13 years marketing and investor relations across a wide range
President of mediums from mining, technology and oil and Kevin received his Bachelor of Science Degree from the
specializing in reservoir engineering
gas data solutions. He is experienced in all aspects University of Calgary and is a member in good standing
Rob Gamley’s career spans over a including reserves evaluation, oil and gas
of corporate development and investor relations of APEGA, CSPG and the CSEG.
decade in corporate finance and development economics, production analysis
for multiple start-ups and TSXV and CSE-listed
consulting, providing corporate strategy and petroleum data analytics. His broader
and communications services to public experience includes working in upstream
companies. Prior to Avanti, Chalmers co-founded
Terreliumresources as a pure-play helium company.
MORGAN KEANE
companies across a broad range of and midstream oil and gas with Shell, Husky, Geologist in Training
industries including biotech, oil and gas and SemCAMS. Esmail provides a diverse
and natural resource exploration and perspective with 11 years of operations and RICHARD BALON Ms. Keane has over 4 years of relevant experience as a
Geologist in Training in the energy industry where she
development. He has been a board process engineering experience at Dow
member of several TSXV-listed companies Chemical and Nexen. He has also been B.S.C, P. Geoph, Senior Geophysicist has developed diverse skills working in a wide variety of
environments including US Basins, unconventional plays,
and brings extensive capital markets recognized by the SPE and CSChE for his Richard Balonhas over 30 years of experience in conventional plays, oil sands and offshore exploration.
experience and a considerable network contributions in facilitating research between the Western Canadian Sedimentary Basin. He is a She has been involved with a handful of oil and gas
of both retail and institutional contacts. academia and industry. technically focused geophysicist with a proven track companies, most recently working at CNOOC Int.
Gamley graduated in 1998 with a Bachelor record working extensive analysis of 2D and 3D (formally Nexen). Ms. Keane is a University of Calgary
of Science from the University of British seismic data across some of the largest oil and gas graduate (2017) with a Bachelor of Science with a major
Columbia. fields in Canada. Balon holds a B.Sc. Geophysics in Geology, minor in Geophysics and a petroleum
from the University of Manitoba and is a member of concentration.
APEGA (P.Geoph.), SEG, CSEG, CSPG.
Avanti Energy - Investor Presentation - 11 -Our Process
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▶ G&G team is building a geological model to
understand helium migration and accumulation
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at a fundamental level.
▶ Approach and methodology is similar to that
used to identify and assess the Montney.
Avanti Energy - Investor Presentation
▶ 80/20 split of opportunities between “elephants”
and assets similar to others in the industry.
▶ Our proprietary system-level understanding
designed to lead to larger, longer-lived resources
in a different zones and accumulations (80%
land target). Others are simply chasing deeper
Cambrian traps & high points (20% land target).
▶ Reviewed 30+ opportunities and high-graded
to 10 for further review while simultaneously
initiating the acquisition process.
12Greater Knappen,
Alberta
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▶ ~9,500 acres in two blocks.
▶ Knappen land package comprised of ~7,000 acres acquired at the recent
March land sale.
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▶ Aden is a 4 section block situated over a closed structural high.
▶ > 75m structural relief. Ideal for trapping helium.
▶ Drill stem tests (DSTs) in wells in and around the newly acquired land package
indicate reservoir quality rock in the Cambrian and Ordovician zones.
Avanti Energy - Investor Presentation
▶ Gas Analysis in multiple zones
▶ Helium, up to ~ 2.18%.
▶ Nitrogen, up to ~98%.
▶ Multiple target intervals in the Devonian and Cambrian sections.
▶ Large potential resource in place.
Knappen
Aden
Alberta Crown Open rights
Montana
Helium gas data : Devonian and Cambrian
Helium gas data : Devonian
Core Data
Flow and build-up data
13Greater
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Knappen,
Alberta
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Avanti Energy - Investor Presentation
Indentifed Structure
▶ Structure based on a shallow horizon.
▶ Limited deep well penetration.
▶ 4 section block situated over a closed structural high.
▶ > 75m structural relief.
▶ Ideal for trapping helium.
▶ Present over most of the acreage.
14Central
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Montana
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▶ 2,749 Acres of continuous land located in
Musselshell county Montana. Avanti holds the
mineral and surface rights to the property.
Avanti Energy - Investor Presentation
Pursuing additional properties nearby.
▶ High grade helium wells drilled near by in the
1970’s by USGS in the Maison formation yielding
commercially viable helium at today’s prices.
▶ In process of completing detailed geological
report and identify basement structures with
helium producing potentials Deadwood and
Madison formation.
15Avanti Share Capital
Issued 44,871,188
Warrants 1,905,300
3,190,000 @$0.20 | 430,000 @$0.60 | 285,300 @$1.00
Options 2,895,000
1,500,000 @$0.30 | 1,395,000 @$1.45
Fully Diluted 49,671,488
Current Cash ~$8,000,000
Avanti Energy - Investor Presentation - 16 -THANK YOU!
TSXV: AVN | OTC: ARGYF
AVANTI ENERGY
Investor Relations
100, 750 11 Street SW
Calgary, AB, T2P 3N7
403-384-0409
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