Avanti Helium signed a binding midstream agreement with IACX Resources to build, finance, and operate a Helium recovery plant for processing raw gas from Avanti's Sweetgrass Helium pool within Greater Knappen. The plant is set to process 10 mmcf/d of raw gas initially, and given the company's estimates of helium concentrations of ~1% should produce ~100mcf/d of helium. Avanti reduces its capital requirements and gains access to the necessary infrastructure to achieve cashflow in a favourable commercial environment. The agreement involves scheduled monthly fees for seven years, with an option to renew annually for the life of the pools. The total midstream and liquefaction cost ranges from $211/mcf in Year 1 falling to $163/mcf from Year 3 onwards. First production is expected in Q1’24.
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