VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 16, 2015) - Avanti Energy Inc. (TSX VENTURE:AVN) ("Avanti" or the "Company") is pleased to announce that it has completed the acquisition of CMI Energia SpA ("CMI") (the "Acquisition") as detailed in Avanti's April 1, 2015 press release. The Company acquired CMI from Dove Energy B.V. ("Dove") for a cash payment of US$1.53 million and 12,970,000 common shares of Avanti valued at $0.30 per share. Mr. Mario Panebianco of Dove has been appointed to the Board of Avanti as an additional director.
CMI owns a 90% working interest in a permit with the largest onshore natural gas development project in Italy (the "Project"). The permit area covers 35.72 square kilometers in Central Italy, and is under an application for the conversion of the natural gas discovery into an exploitation concession. The field limits and reserves have been fully delineated by two existing new wells along with other older wells. The two new wells tested combined production in excess of 20 million cubic feet per day (Mcf/d). As of December 31, 2014 CMI has Net Proved Reserves of approximately 52.60 billion cubic feet (Bcf) of natural gas; and Net Proved plus Probable Reserves of 61.29 Bcf. These figures are based on a detailed independent reserve report commissioned by Avanti dated February 27, 2015 from Chapman Petroleum Engineering Ltd.
Avanti President John McIntyre commented: "I am pleased to have now closed the CMI acquisition and on behalf of Avanti shareholders I welcome Mario Panebianco to the Board of Directors of Avanti. Mario has a long and successful career in the oil and gas industry will be very helpful to AVN in growing its asset base in and outside of Italy"
Concurrent with closing of the Acquisition, Avanti arranged for a syndicate of investors to acquire a 41.66% working interest in the Project for US$1.43 million, plus the commitment of the initial US$1.3 million to finance the operating budget for the Project. The operating budget is designed to complete the engineering required to secure a production concession from the Italian authorities.
At the conclusion of the above transaction CMI will continue as the operator of the Project and will retain a 33.33% working interest, carried through the initial operating budget.
Private Placement
As announced April 1, 2015, the Company has closed the first tranche of a non-brokered private placement effective April 15, 2015. Avanti has issued 1,666,667 shares at $0.30 per share [US$0.24] for proceeds of $500,001. Shares issued under the placement are subject to a four-month hold period, which will expire four months from the date of closing.
Avanti was established in 2013 by energy industry executive John McIntyre and his team of professionals, representing over 200 years of global oil and gas experience in over 20 countries, including: Italy, Switzerland, United States, Indonesia, South Africa, Colombia, and Argentina. Avanti's focus is on the acquisition and enhancement of producing and other low risk assets that may benefit from the application of proven technologies.
"John F. McIntyre"
President, CEO
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