OTCQB: AMNI
Company Overview
Research Profile Company Website
American Noble Gas is an oil and gas exploration, development, and production company with a history of operations in Texas, Kansas, Oklahoma, and the Rocky Mountain region of the US. The Company is currently exploring and developing natural gas, helium, and other noble gases and brine minerals contained in the Hugoton Gas Field, a prolific natural gas and helium gas field spanning the states of Kansas, Oklahoma, and Texas, through a 40% participation in a farmout agreement that covers drilling and completion of up to 50 wells. American Noble Gas also owns 60.7143% of GMDOC, LLC, LLC which acquired certain oil and gas leases covering approximately 10,000 acres located in Southern Kansas near the Oklahoma border. The GMDOC leases currently produce approximately 100 barrels of oil and 1.2 million cubic feet of natural gas per day on a gross basis. The Company also owns mineral rights to approximately 11,000 acres in the Otis/Albert Field located on the Kansas Central Uplift.
$2M+ Annualized EBITDA from GMDOC Leases
- Acquired 61% interest in GMDOC, LLC in April 2022
- Leases cover ~10K acres in central/south Kansas near Oklahoma border
- Currently producing 110 barrels of oil and 1.5 million cubic feet of natural gas per day on a gross basis
- Acquisition financed 80% by bank debt (84 months at 6% per annum)
- Significant undeveloped reserves provide potential for increased production and cash flow
Value Proposition
American Noble Gas' long-term vision of becoming a leading producer of high-grade helium is supported by their expert team and recent acquisitions. The Company’s participation agreement in the Hugoton Gas Field, covering up to 50 horizontal and/or conventional wells, positions them as a strong player in the historical center of the world’s helium production. Acquisition of approx. 61% interest in GMDOC LLC oil and gas leases in April 2022, covering approx. 10,000 acres in central/south Kansas, currently generates annualized EBITDA of $2 million from production of 110 barrels of oil and 1.5 million cubic feet of natural gas per day. The leases have significant undeveloped reserves that provide increased production and cash flow potential. American Noble Gas also owns existing production and mineral rights/leasehold on approx. 11,000 acres in the Otis/Albert Field located on the Central Kansas Uplift, which currently produces commercial quantities on helium as well as oil and natural gas with seismic data indicating large untapped reserves. American Noble Gas is pursing plans to uplist to a senior US exchange.
Prolific Hugoton Gas Field Farmout Agreement
- Covers all of Haskell and Finney counties and allows drilling and completion of up to 50 horizontal and/or conventional wells
- Initial exploratory well completed and placed into production in August 2022
- Initial flow rates indicate natural gas production at 105-140 MCF per day and helium production of 500 CF per day
- 40% participation right in farmout agreement to explore and develop natural gas, helium, and brine minerals
Market Data
Investment Highlights
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Positioned to become a material producer of high-grade helium for international markets
- Owns properties in areas with commercial concentrations of helium and available infrastructure, including the prolific Hugoton Gas Field, the largest continuous, conventional Helium and natural gas field in North America
- The Hugoton Gas Field is the historical center of world’s Helium production with over 300 BCF of helium and over 75 TCF of natural gas cumulative production
- Building portfolio of conventional oil and natural gas properties in US to generate positive, stable cash flows that support the Company’s overall operating strategy
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Helium focus addresses unmet need from dwindling US supply
- Helium demand forecasted to grow at a 6& CAGR from 2021
- US expected to produce 38% of global supply in 2022, down from 55% in 2019
- Helium used in many high-value applications (MRI coolant, space exploration, and microchip manufacturing)
- Wholesale/retail prices for helium are 100-150x the value of natural gas
- Helium resources typically lack existing infrastructure to produce, process, and sell the gas
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World-class advisory board comprised of helium experts
- Tom Harrison: 30+ year veteran of the helium and noble gas industry
- Chris Ballentine: well-known expert on the origin, migration, and accumulation of helium; currently had of Oxford University’s Department of Earth Sciences
- Jon Gluyas: 28 years of industry experience; founded 10 companies through spinouts from his research on helium exploration together with carbon capture and storage
- Paul Mendell: developed noble gas delivery technology; managing AMNI’s entry into helium and rare earth minerals industries
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Highly experienced management team
- Stan Ross, Chairman: 30-year history with the Company; Chairman, President, and CEO of Digital Ally (Nasdaq: DGLY) since 2005
- Thomas Heckman, CEO/CFO: CFO, Secretary, and Treasurer of Digital Ally since January 2008
- John Loeffelbein, COO: appointed COO in 2019; nearly 25-year history in oil and gas industry
