American Noble Gas (OTCMKTS:IFNY) Inks Farmout Agreement for Exploration and Development of Helium & Brine Materials
Independent oil, gas and noble gas exploration and development company, American Noble Gas Inc. (OTCMKTS:IFNY), announced on April 13, 2022 that it has agreed to acquire a 40% participation in a farmout agreement. It has been negotiated with a major, well respected, operator relative to its existing oil and gas and brine interests in the Hugoton Gas Field in Haskell and Finney Counties, Kansas.
Market Stats
On Wednesday, IFNY stock moved up 2.40% to $0.43 with more than 10.4K shares, compared to its average volume of 9.8k shares. The stock moved within a range of $0.4104 – 0.4300 after opening trading at $0.42.
AMGAS is also set to team up with three other partners (collectively known as JV), to explore for and develop oil and gas and brine reserves on the property covered by the farmout agreement. It covers drilling and completion of up to 50 wells, with the first exploratory well scheduled to be spudded in April 2022.
JV is set to utilize existing infrastructure assets, including water disposal, existing brine stream, gas gathering and helium processing. The agreement grants exclusive rights to JV for taking in-kind and marketing its share of helium. They can sell the helium produced at prevailing market prices.
JV has also acquired the rights to all brine minerals produced, subject to a 10% royalty, across all of Finney and Haskell Counties. Brine minerals are harvested from the formation water produced from active, and to be drilled, oil and gas wells and may include a variety of dissolved minerals, including bromine, iodine and magnesium.
Key Quote
Stanton E. Ross, Chairman and Chief Executive Officer of AMGAS remarked “The Company couldn’t be more pleased to announce its 40% interest in the Farmout Agreement through the Hugoton JV. The Farmout Agreement provides Hugoton JV with access to explore and develop helium and other noble gases as well as brine minerals in the Hugoton Gas Field. We believe that commercial-level reserves of helium are present in the acreage included in our Farmout Agreement. The Company’s newly appointed advisory board and our service agreement with U.S. Noble Gas, LLC, pairs us with specialists who can provide invaluable help to the Hugoton JV for developing reserves of helium and brine minerals. Helium is a rare noble gas with considerable value relative to natural gas (methane).
Traders Corner
IFNY stock is trading above the 20-Day and 50-Day Moving averages of $0.39 and $0.39 respectively. However, the stock is trading above the 200-Day moving average of $0.35.