Avanti Energy Inc. has signed a purchase and sale agreement (PSA) with Dove Energy B.V. (Dove) for the purchase of CMI SpA (CMI), an Italian corporation that owns a 90% working interest in a natural gas permit covering 35.72 square kilometers onshore in Central Italy, including an application for the conversion of the natural gas discovery in the permit into an exploitation concession.
The permit area includes two new wells, along with other older wells, that have fully delineated the field limits and reserves. The two new wells tested combined production in excess of 20,000 Mcf/d (3,333 barrels of oil equivalent (boe)/d). CMI has Net Proved Reserves of approximately 6.4 million boe; and Net Proved plus Probable Reserves of 7.5 million boe. These figures are based on a detailed independent reserve report from DeGolyer & MacNaughton.