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July 14, 2021, 9:28 a.m. EDT

Could This Rare Gas Be The Next Commodity To Boom?

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Jul 14, 2021 (Baystreet.ca via COMTEX) -- Major commodity shortages all over the globe are wreaking havoc in the markets...and driving up prices of goods for consumers.

Most recently, a widespread shortage in the lumber market has generated a great deal of attention due to the impact this shortage is having on the price of home renovations and new home construction.

A global shortage of microchips is having a dramatic impact on the electronics market as well as new car manufacturing.

And additional shortages in agricultural products, building materials and cleaning products are also driving up prices and causing worry all over the globe.

But a looming, potentially unavoidable shortage in one of the world’s most valuable commodities could soon trigger the most critical supply squeeze of our lifetime.

It’s a commodity whose global market is predicted to be worth $18.1 billion by 2025 – with a compound annual growth rate (CAGR) of 11% over the next four years.

This commodity -- which is absolutely indispensable to a number of critical applications, including hard drives, fiber optic cables, semiconductor chips, superconductors, medical research, space exploration and more – is helium.

That’s right – helium.

What is often thought of only as part of a child’s birthday balloon is actually one of the world’s most critical – and irreplaceable – commodities.

And right now, we’re on the verge of a critical shortage.

Making matters worse is that, thanks to a combination of factors, there have been virtually no companies exploring for new sources of helium until very recently.

But one company – Avanti Energy Inc. ( TSX:AVN.V ; US OTC:ARGYF ) – has a technical team that previously made one of the most significant natural gas discoveries in the world, the Montney. This skill set will be crucial for unlocking a similar significant discovery for helium in North America.

And just recently, the company announced its intention to add to its already impressive portfolio of property, with the proposed acquisition of the license rights to explore approximately 50,000 acres of highly prospective helium properties in Montana.

With a premier portfolio of prospective helium properties – and a successful oil and gas exploration team in place – Avanti Energy( TSX:AVN.V ; US OTC:ARGYF ) appears to be positioned perfectly to offer significant upside potential as helium prices continue to rise.

And a significant rise in helium prices is just what the experts are now predicting…

Canaccord: “Demand is poised to grow for the foreseeable future...leading to a significant price increase.”

While it’s true that helium is the second most abundant element in the universe…it’s extremely rare on earth.

Most of the helium produced on earth is mined in natural gas formations.

For decades, the U.S. was the world’s largest producer of helium, accounting for as much as 40% of the worlds’ supply.

The world’s single largest source of helium for the past 70 years has been the U.S. Federal Helium Reserve (FHR) in Amarillo, Texas.

But within the past few years, the FHR stockpile has been depleted, leading to a surge in helium prices as explorers scramble to find new sources of helium.

According to the experts at Canaccord Genuity, “The helium market has been thrown into a state of flux with a major supply source being removed from the market. At the same time, we believe demand is poised to grow for the foreseeable future.”

Canaccord continued, “ With near-term replacement options limited, a supply gap is emerging, leading to a significant price increase.”

Just How Critical is Helium?

While helium is most commonly thought of as being used for the inflation of balloons, the truth is helium is used in a number of critical parts of daily life.

* Medical Industry – Helium is used to operate MRI machines and as part of respiratory treatments.

* Cryogenics – Helium is the only element that can come close to reaching absolute zero.

* Internet Connectivity – Fiber optic cables must be manufactured in a pure helium environment.

* Electronics – Many electronics and semiconductors – including mobile phones – require helium to be used at various stages of the production process.

* Computers – Helium-filled hard drives offer 50% higher storage capacity with 23% lower operating power.

* Car Air Bags – Helium is the gas of choice for effecting the near instantaneous deployment of air bags in cars.

Helium is used by companies like Amazon, Google and Netflix to help cool their data centers. And the Canadian government recently added helium to its critical minerals list.

So clearly, helium is a commodity that is absolutely essential in today’s world.

But with the largest single source of helium in the world diminishing– and a lack of exploration activity over the past several years to replenish our supply…

There seems to be no question that (1) helium prices are poised to continue climbing higher…and (2) any company that can help expedite bringing new helium supplies to market figures to be handsomely rewarded.

That’s why Avanti Energy Inc. ( TSX:AVN.V ; US OTC:ARGYF ) right now appears to be such an attractive potential investment.

Avanti Energy’s Team of Successful Oil & Gas Executives Now Seeking New Discoveries of Helium Reserves

Avanti’s management team is made up of a group of highly successful former oil and gas executives, including four former employees of Encana Corp.

Many of the members of this dynamic leadership team were involved in the early stages of the discovery of the Montney Formation, one of the premier natural gas formations in North America.

Avanti CEO Chris Bakker has over two decades of experience in oil and gas, most recently working as a commercial negotiator with Encana/Ovintiv for major facilities and pipelines in the Montney gas play.

His expertise includes all facets of Natural Gas Exploration like land acquisition, exploration, drilling, well production and facility integration and construction.

Vice President Genga Nadaraju has over two decades of experience in the oil & gas industry…Director Dr. Jim Wood has over 30 years of experience as a geologist specializing in reservoir characterization…VP Ali Esmail has spent the past 13 years specializing in reservoir engineering and prior experience as a facilities and process engineer totaling 20+ years. Senior Geophysicist Richard Balon has over 30 years of experience in the Western Canadian Sedimentary Basin.

This is an experienced team with an impressive track record of success in the oil and gas industry.

And now they seek to do it again.

This very same successful team is now using the same methodology at Avanti Energy( TSX:AVN.V ; US OTC:ARGYF ) to explore for what it hopes will prove to be some of the richest helium deposits in the world.

Helium is found by drilling wells, similar to natural gas. It is formed from radioactive decay of heavy elements like Uranium and Thorium.

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