Big Picture – A Deep Dive Examination of Avanti Energy
Avanti Energy Snapshot
Avanti Energy Inc. is a newly formed oil and gas company, listed on the TSX-V Exchange in Canada. Led by former YPF and Forest Oil senior executive, John F. McIntyre, Avanti has assembled a highly experienced team of international oil and gas professionals.
Avanti’s mission is to develop and enhance existing oil and gas fields in mature basins in the United States and to apply such expertise to other parts of the world that have high netbacks and where incumbent national oil companies have begun to shift their focus away from maturing onshore oil fields in favor of larger opportunities offshore or in frontier areas.
In addition, Avanti will leverage its management team's deep experience in international oil and gas, representing more than 20 countries and 200 years, in areas where it believes it can achieve superior results.
Avanti is focused on the development of 76 Bcf of proven and probale gas reserves in Central Italy through its subsidiary company CMI Energia SpA. Avanti's management team is actively evaluating the acquisition of other proven reserves in Italy through its recently formed Lucana Idrocarburi srl, a Basilicata-based company that is owned 80% by CMI and with specific focus on the Basilicata Region and surrounding regions.
Based on the Avanti management team's deep experience in field development and rehabilitation, Avanti believes it is well postured to create shareholder value within a relatively short period of time.
High demand for natural gas with favorable market pricing
Extensive reliance on natural gas-fired electric generation (50+% of total generation)
2nd largest natural gas importer and consumer in Europe after Germany (2.2 Tcf imported and 2.5 Bcf consumed in 2013; 88+% imported)
Italy’s National Energy Strategy indicates strong desire to boost domestic oil & gas production
Long history of oil and gas development
More than 7,000 oil and gas wells have been drilled
250,000 km of 2D and 35,000 km2 of 3D seismic analysis
2.1 Tcf of natural gas proved reserves (6th largest in Europe) and 560 MMbbl of oil proved reserves (5th largest in Europe) (as of 1/1/14)
Well-developed gas infrastructure network
Need for more independent E&P companies like Avanti to develop onshore gas fields
Why we like Italy:
Fully deregulated gas market
Very strong natural gas market
Security of gas supply issues from North Africa and Russia, favoring domestic production
Opportunities for smaller E&P companies to rehabilitate onshore fields
Very reasonable fiscal regime, including low royalty rates
Groundbreaking recent legislation enacted to simplify and speed up permitting process
AVN management has experience in Italy and has secured specific gas development opportunity
John McIntyre, Chairman
Mr. McIntyre is a geoscientist with over 27 years of domestic and international experience, including significant offshore production operations, extensive land and marine 3D seismic acquisitions, successful exploration play and prospect generation with material discoveries, major field development, acquisitions and divestitures, and multi-million dollar contract negotiations. Prior to forming Avanti Exploration, he held the positions of: SVP Forest International, JVP Manager Maxus Argentina, and President & General Manager of Maxus Indonesia where he was responsible for over 100,000 bopd of production and several thousand employees. Prior to his work in Indonesia, he served as Exploration Manager for Maxus Rockies & Mid-Continent Region.
Karl Kottmeier, President & CEO
Mr. Kottmeier has over 20 years of experience in corporate finance, retail brokerage and corporate administration. He is a founding director and President of Rockgate Capital Corp., a public company listed on the TSX, and a director and officer of Bama Gold Corp. and Falkirk Resources Corp., also public companies listed on the TSXV. In these capacities, Mr. Kottmeier has been actively involved in the exploration and development of gold and uranium properties in Africa. Mr. Kottmeier is also a founder and principal of Contact Financial Corp, a western Canadian investor relations and corporate communications service provider.
Mark Frascogna, Senior Vice-President
Mr. Frascogna has been active in the international and domestic oil and gas industry for over 25 years. He has served in various management capacities throughout his career with large independents and privately held companies, including Country and Project Manager in Italy for Forest Oil, Executive Director of Compagnia Mediterranea Idrocarburi srl – a Forest subsidiary, and Project Manager for Calpine Natural Gas in Italy. While working for Forest and Calpine, he also managed M&A efforts in Europe. Earlier in his career, he served as Vice President of Seaxe Oil Corporation, a NASDAQ listed oil and gas company active in the Paris basin in France. Mr. Frascogna holds a Bachelor of Arts degree in business from Millsaps College and a Master of International Management degree from the Thunderbird School of Global Management.
Doug Ford, CFO
Since 1987, Mr. Ford has been the Director of Dockside Capital Group Inc., a private merchant banking and venture capital firm specializing in providing services to, and arranging funding for, emerging growth companies. Mr. Ford is a director and officer of a number of public companies and is currently Chief Financial Officer of Rockgate Capital Corp., Rockridge Capital Corp., Bama Gold Corp. and Falkirk Resources Corp. He holds a Bachelor of Arts degree from the University of British Columbia. Mr. Ford holds a BA in Political Science from the University of British Columbia.
Kirk Gamley, Vice President - Corporate Development
Mr. Gamley is a founding director and Vice-President of Corporate Development of Rockridge Capital Corp., a public company listed on the TSXV, Vice-President of Corporate Development of Rockgate Capital Corp., a public company listed on the TSX and an officer of Bama Gold Corp. and Falkirk Resources Corp., both public companies listed on the TSXV. In these capacities, Mr. Gamley has been actively involved in the exploration and development of gold and uranium properties in Africa. Since 2005, Mr. Gamley has also been an investor relations consultant to a number of Toronto Stock Exchange and Exchange companies through his role as President and CEO of Contact Financial Corp., a western Canadian investor relations and corporate communications service provider.