Bruce Campbell (2)Avanti EnergyAVN.VTOP PICKApr 22, 2022

Are in helium in Canada and U.S. with 3 successful wells. After drilling, they're now getting that helium to market. A US partner will process the gas. What price will they get? They project $20-30 million which would allow them to drill even more wells. Helium is far more stable than natural gas. he expects a January effect for AVN. Last year, they raised money for production but impatient shareholders sold, and they've seen tax-loss selling last month. It's one of his larger holdings.

Now has a production partner, and they're building production facilities with estimated placement by late 2023/early 2024. Waiting for a contract, and what the price will be. He expects cashflow in 2024 of $25M.

Believes large opportunity in Helium sector.
Stable demand for Helium - good for business model.
Management team transitioning from energy sector.
Facility in place to process Helium gas.
Expecting production in early 2024.
Free cash flow expected @ ~$40 million in 2025.
Very under followed/under valued stock.

Very impressed from an operational standpoint. Market has oversold stock. Drilled wells that have been successful (top 3 in North America). Recent fundraising cancelled due to weak share price. Drilling program is risky. Complex financing strategy has put pressure on the share price. Continues to hold shares and likes the company.