VANCOUVER, BRITISH COLUMBIA / ACCESSWIRE / April 24, 2014 / Avanti Energy Inc. (TSXV: AVN) ("the Company" or "Avanti") is pleased to provide an update and summary of its first quarter 2014 activities. The Company has made material progress during the first quarter toward reaching its primary objectives of identifying a suitable development acquisition in Latin America and establishing production in Louisiana.
The Company participated in the VUA Miller No. 1 Well in the Cowpen Creek area of Beauregard Parish, Louisiana, with a 25% working interest with its affiliate Avanti Exploration Louisiana, LLC. The well was directionally drilled and tested 108 bopd of 49 degrees gravity oil and 30 Mcfgd with 1,200 flowing tubing pressure on a 16/64" choke, from the Cockfield reservoir, during an eight hour test. The well is currently being placed on production and is expected to be flowing at the end of April or beginning of May. Upon producing for two to three weeks, the Company will make an announcement as to what it expects will be sustained production rates. Additionally, the Company participated with a 25% working interest in a re-entry of the PWK #1 Well also in the Cockfield reservoir in the Cowpen Creek area. The well is currently on long term production test and is flowing 7 bopd and 10 Mcfgd on a 22/64" choke. Further results of such test will be made available at the same time as results of the VUA Miller No. 1 Well.
The Company undertook and closed on a non-brokered private placement during the first quarter of 7,430,578 common shares at a price of C$0.16 (US$0.16) per share for $1,188,892 USD. The Company paid C$28,639 and US$870 in finder's fees and issued 145,991 warrants each exercisable into one common share at US$0.16 for a term of two years from the date of issuance.
As part of the Company's strategy to build a world class team in Latin America, Mr. George J. Donnelly Samper was appointed to the board of directors of the Company. Mr. Donnelly's many years of experience in the oil and gas industry with Gulf Oil Company and Texaco Inc., and deep
personal and professional network in Brazil and Colombia make him particularly well-equipped to assist Avanti in executing its strategy in Latin America.
Further to building the Company's team and technical resources for Latin America, and in particular in Brazil, Avanti entered a memorandum of understanding (MOU) with Sierra-Hamilton for the purpose of evaluating development opportunities in onshore Brazil. Sierra-Hamilton's presence in Brazil and deep technology resources in field development, planning and operations, as well as cutting edge unconventional expertise, will be of key importance to Avanti's efforts. Currently, Avanti and Sierra-Hamilton are evaluating various onshore opportunities in Brazil.
Earlier this week, as part of Avanti's evaluation and interest in Colombia, the Company appointed Miguel Ramirez as its Country Manager. Mr. Ramirez retired from ExxonMobil in 2008 after 35 years of service, and served in an advisory capacity until 2012. During his career at ExxonMobil, his positions included: Vice President Technical Mexico; Exploration Manager Peru; New Venture Manager Mexico; International Liaison in Houston; Manager Central/South America Exxon Exploration; Exploration Manager-Geologist-Corporate Planning Colombia; and Exploration Manager Brazil. Management believes that Miguel's many years of experience and excellent reputation in the oil industry, make him particularly well equipped to assist Avanti in reaching its goals not only in Colombia but potentially in the entire region.
Avanti is aggressively seeking a large acquisition in Latin America and in this regard has established a highly skilled international team, with relevant Latin American experience, to carry out this objective. In addition, the Company is in discussions with several large capital providers as part of its financing strategy for its first acquisition in Latin America.
For more information please contact Karl Kottmeier, director, at 604 689 7422. Please visit our website at www.avantienergy.com.
"John F. McIntyre"
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE: Avanti Energy Inc.
Leave a comment...