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Tech Giants Are Fighting Over Falling Helium Supplies

FN Media Group Presents Oilprice.com Market Commentary

 

London – February 14, 2022 – A dramatic scenario may now be unfolding in the markets for one of the most overlooked natural resources on the planet. This essential commodity – helium – is used to drive innovation for many of the world’s biggest tech companies…and it is needed to help manufacture everything from medical equipment to computer chips.  Mentioned in today’s commentary includes:  Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), Intel Corporation (NASDAQ:INTC), Advanced Micro Devices (NASDAQ:AMD), Nvidia (NASDAQ:NVDA), IBM Corporation (NYSE:IBM).

 

Avanti Energy Inc. (AVN.V; ARGYF) is generating attention in the helium space as it announces successful results from the beginning of its three-well exploration drilling program on its property in the Greater Knappen region.

 

The Greater Knappen is a 69,000 acre property stretching from Montana to Alberta, Canada…and it may represent one of the best North American prospects for new helium discovery.  Avanti Energy has a 100% operatorship of this property…and the company’s experienced technical team has identified 17 drilling targets in the region.

 

Avanti’s geological interpretation of the Greater Knappen property estimates an undiscovered resource potential of:

 

* Low case: 1.4 bcf of Helium

* Mid case: 4.4 bcf of Helium

* High case: 8.9 bcf of Helium.

 

Based on these estimates – and current helium prices – it’s possible that Avanti Energy (AVN.V; ARGYF) could be sitting on as much as $1 billion worth of helium.

 

Initial Drill Testing on Avanti’s First Helium Well Shows Promise

 

On January 24, the company announced that it had completed initial open hole logging and drill stem testing on its first helium well, Rankin 01-17, on the Greater Knappen property. The Rankin 01-17 well was successfully drilled to a depth of 5,860 feet and encountered all the targeted zones for helium potential. Open hole logging indicated five zones with reservoir characteristics (good porosity and low water saturation) suggesting further testing is warranted.

 

The company’s analysis has shown that there is potential for economic helium production in two of the three target zones.

 

Crunching the Numbers: What Success in the Greater Knappen Could Look Like

 

What makes the opportunity with Avanti Energy (AVN.V; ARGYF) so intriguing to us is the upside potential associated with success. As mentioned earlier, with the 69,000-acre Greater Knappen property, it’s possible that the company could be sitting on as much as $1 billion worth of helium if the company’s estimates are proven to be accurate.

 

Just six miles from Avanti Energy’s Greater Knappen property, one of the company’s competitors is currently producing 55,000 cubic feet of helium per day…and it had a helium concentration rate of 1.4% in the raw gas stream.

 

It’s estimated that the company that owns this nearby well is seeing a payback on their well in roughly six months. That’s impressive, to be sure – and it bodes well for Avanti Energy Inc.

 

In Avanti’s case – with a helium concentration potentially as high as 2% – it’s possible that the time to payoff for each well could be even shorter. In fact, each well is projected to cost roughly $1.5 million…and the potential may exist for each of Avanti’s wells to be paid back in just 3 months. And these are wells that could easily run for ten years or more…possibly even 20 years.


The Bull Market for Helium Shows No Signs of Slowing Down

 

As a noble gas helium is not combustible and has properties that make it irreplaceable for a number of important industrial applications. Helium is the second most abundant element in the universe but it is extremely rare on earth.

 

With a global helium shortage looming, it’s estimated that the supply will not keep up with demand for the next 20 years. And that is happening as industry demand is projected to increase at a compound annual growth rate of 11% each year through 2037.

 

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.

 

Helium is used by companies like Amazon, Google and Netflix to help cool their data centers. And both the U.S. and Canadian governments have recently added helium to their critical minerals lists. Not to mention…approximately $12 million worth of helium is needed for a single space rocket launch.

 

In fact, the single largest buyer of helium is NASA, consuming almost 75 million cubic feet annually to cool liquid hydrogen and oxygen for rocket fuel. And with the highly publicized rocket launches from Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin…that consumption of helium for space launches is only likely to increase in the months ahead. That’s why Avanti Energy right now appears to be such an attractive potential investment.

 

Why The Window of Opportunity for High Upside Helium Potential Could Close Quickly

 

The results of the company’s initial drill testing appear to support the significant potential for Avanti’s Greater Knappen project. And Avanti Energy is moving quickly – with the second helium well already spudded…and the next multi-well drilling program anticipated to start in Q1 2022.

 

Assuming a continued red-hot bull market in helium, any company that shows the potential for exploration success could attract significant investor attention. With a current market cap of approximately $80 million there is tremendous potential if Avanti makes a bona fide discovery.

 

Additional developments related to the company’s three-well drilling program in the Greater Knappen region could result in increased visibility and rapid moves for Avanti Energy Inc. (AVN.V; ARGYF)

 

Other companies that could benefit from a different kind of shortage…

While the tech industry runs on helium…it is also dependent on another kind of resource. One that both a shortage of materials, and production shutdowns during COVID-19 has made increasingly scarce. Semiconductors.

 

One of the world’s leading semiconductor manufacturers, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM)  has a storied history and helped shape many technologies we rely on today. Founded by Morris Chang in 1987 as part-time contract chipmaker for IBM and Motorola–the company that would eventually become known simply as “TSM ” or Taiwan Semiconductor Manufacturing Company was only 200 strong when it started out back then!

 

The global semiconductor industry is a highly competitive one and only five companies in the world own chip-making facilities, making Taiwan Semiconductor a standout in the industry.. Indeed, many leading top semiconductor companies are “fabless,” meaning they only design the chips but rely on other companies, known as foundries, to actually make the chips.

 

Intel Corporation (NASDAQ:INTC) is a multinational technology company headquartered in California. It has been around since the late 1960s, when it was founded by Robert Noyce and Gordon Moore who first coined their portmanteau name- Integrated Electronics orIe . Intel supplies processors for computer systems such as desktops laptop servers tablets mobile phones (including smartphones)and more; they also make motherboard chipsets that connect these devices together so you can use your processor effectively while having access to fast memory too!

 

At its core, Intel is a chipmaker. And a big one at that. It’s also a leader in the global semiconductor game thanks to its investments in 65nm process, an advanced node used in volume CMOS semiconductor fabrication. Intel has manufactured semiconductors in Ireland since 1990, and has invested around $6 billion there in this time, but is beginning to branch out with new investments in the United States, as well.

 

Advanced Micro Devices (NASDAQ:AMD) is an innovator in the world of computing and graphics. The company was founded over forty years ago with a single mission: to advance technology as fast it could be invented. Since then, they’ve become one of the most relied upon brands for processing power – both at home on your own PC or game console; but also when you need high performance computer systems that can process data quickly enough maybe even live video streaming where every millisecond counts!

 

Advanced Media Devices isn’t just building home computers, either. AMD also is building CPUs to be used in massive data centers, the kind supporting the likes of Microsoft’s Azure cloud-based workstations and desktops and much more.

 

Nvidia (NASDAQ:NVDA), AMD’s biggest competitor, is a company that develops graphics processing units, or GPUs. Nvidia was founded in 1993 and has been making waves in the gaming industry ever since with their innovative products. They are continually releasing new technologies to stay ahead of the competition and have an excellent reputation for quality. The company also manufactures processors that power many other devices such as automobiles, robots, and smartphones. These processors are often used for artificial intelligence systems like driverless cars or voice commands on mobile phones so we can expect Nvidia’s technology to keep getting more advanced over time!

 

Nvidia’s dedication to innovation is clear in all areas of tech, from computer graphics and artificial intelligence research that are core to robots or future cities.

 

It’s also pushing new technologies into the world with its enterprise server GPUs—even setting records! Thanks for being there when we needed you most, Nvidia–and don’t worry: your hardware will not go unsupported now that it has been so instrumental before this point too.

 

IBM Corporation (NYSE:IBM) or International Business Machines Corporations an American multinational technology company with headquarters in Armonk New York. They specialize in developing and providing computer related products worldwide like the automated teller machine (ATM), magnetic stripe card which we use today for credit cards among other things such as floppy disks drives; hard disk drives that store data magnetically on aluminum foil within a circular shape called platters rotating at over 3 inches per second so it can be read by head movements inside our computers

 

IBM is often considered one of the most innovative companies in its field, with a long list of inventions to date. In fact they were responsible for many technologies that are now taken-for granted and seen around us every day like ATMs or floppy disks! And while this history certainly makes them an excellent candidate when it comes time to explore new trends such as blockchain technology; their rapid growth means they aren’t ignoring any potential opportunities.


By. Michael Scott

 

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

 

Forward-Looking Statements

 

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that prices for helium will significantly increase due to global demand and use in a wide array of industries and that helium will retain its value in future due to the demand increases and overall shortage of supply; that Avanti will able to successfully pursue exploration of its licenses and properties; that Avanti’s licenses and properties can achieve drilling and mining success for commercial amounts of helium; that indications of potential for economic helium in Avanti’s initial wells will predict future results; that Avanti will be able fulfill its obligations under its licenses and in respect of its properties; that Avanti will be able acquire the rights to the helium on its prospective helium properties; that the Avanti team will be able to develop and implement its helium exploration models, including their own proprietary models, that may result in successful exploration and development efforts; that historical geological information and estimations will prove to be accurate or at least very indicative of helium; that high helium content targets exist on Avanti’s projects; and that Avanti will be able to carry out its business plans, including timing for drilling and exploration. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information.  Risks that could change or prevent these statements from coming to fruition include that demand for helium is not as great as expected; that alternative commodities or compounds are used in applications which currently use helium, thus reducing the need for helium in the future; that the Company may not fulfill the requirements under its licenses for various reasons or otherwise cannot pursue exploration on the project as planned or at all; that the Company may not be able to acquire the helium rights on its properties as contemplated or at all; that the Avanti team may be unable to develop any helium exploration models, including proprietary models, which allow successful exploration efforts on any of the Company’s current or future projects; that Avanti may not be able to finance its intended drilling programs to explore for helium or may otherwise not raise sufficient funds to carry out its business plans; that geological interpretations and technological results based on current data may change with more detailed information, analysis or testing; and that despite promise, results of the recent drilling and exploration may be inaccurate or otherwise fail to result in locating or developing any commercial helium reserves on the Avanti properties, and that there may be no commercially viable helium or other resources on any of Avanti’s properties. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

 

DISCLAIMERS

 

PAID ADVERTISEMENT.  This communication is a paid advertisement and is not a recommendation to buy or sell securities. Oilprice.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively “Oilprice.com”) has been paid by Avanti fifty thousand US dollars for this article to provide investor awareness advertising and marketing for AVN. The information in this report and on our website has not been independently verified and is not guaranteed to be correct. This compensation is a major conflict with our ability to be unbiased. This communication is for entertainment purposes only. Never invest purely based on our communication.

 

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This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

 

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Media Contact e-mail:  editor@financialnewsmedia.com  U.S. Phone: +1(954)345-0611

 

SOURCE: Oilprice.com

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