AVANTI’S SUBSIDIARY SIGNS LONG TERM GAS SALES AGREEMENT WITH SHELL ENERGY EUROPE

Thursday December 10, 2015

Vancouver, British Columbia, December 8th, 2015 Avanti Energy Inc. (TSXV: AVN) (“Avanti” or the “Company”) is pleased to announce that its Italian subsidiary CMI Energia S.p.A (“CMI”) has signed a long term gas sales agreement with Shell Energy Europe Limited (“Shell”) for its future gas production in Italy.

 

Shell Energy Europe is a major integrated marketing and trading company, providing businesses acrossEuropewith advanced solutions for energy assets and commodities.

 

CMI’s Managing Director,Mark Frascognacommented: “CMI is very pleased to enter into this agreement with Shell. This agreement is a significant step forward for CMI and its Colle Santo gas development project.” 

 

“Italy is highly deregulated gas market. Our agreement with Shell allows Avanti to focus on near term reserve and production growth inItalywithout the cost and distraction of building and managing a marketing organization" stated John McIntyre, President, CEO.

 

CMI has assembled a team of world renowned engineers, experts in project design, gas processing technology, and environmental management working to submit what will be a highly attractive and viable development plan for its Colle Santo gas project.

 

Located in centralItaly, the Colle Santo project is the largest undeveloped onshore gas field inItaly. Colle Santo contains 72.7 bcf of gross proven undeveloped and an incremental 12.0 bcf gross probable undeveloped gas reserves, based on the December 31, 2014 report from Chapman Engineering in accordance with the COGE Handbook. The current proven and probable field limits cover 2,451 acres and the reserves have been fully delineated by two existing new wells along with six older wells. The two existing new wells are currently capable of production in excess of 20 mmcf of gas per day. As previously announced, Avanti has identified an extension to the Colle Santo field that has tremendous potential to expand the existing reserves. CMI is operator and, along with its partners, owns a 90% (net 33.3%) working interest in the project.

 

 

For more information regarding the Company please contact Kirk Gamley, corporate communications, at 604-689-7422. 

 

 

 

 

 

“John F. McIntyre”                                                                                                                                       

President, CEO         

 

 

 

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.


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