New DME Investor PresentationHere is the link to DME's new investor presentation: https://desertmountainenergy.com/wp-content/uploads/2021/09/DME-Investor-Presentation-09162021.pdf
A couple of key bits:
[BEGIN DME PRESENTATION INFORMATION]
PLAN TO PRODUCTION
- Drill Wells #5, 6 & 7 in McCauley Field
- Acquire a processing facility estimated cost between $4.5 m and $6.5 m
- Production from 4 wells in the McCauley Field late Q1 or early Q2
- Drilling Gunner Dome Prospect wild cat well
- Drill 2 or 3 off setting wells in the Rohlfing Field
- Production for 4 to 5 wells in the Rohlfing Field starting Q4 2022 or Q1 2023
- Bring on 60 to 70 new wells over a 5 year period
ROHLFING FIELD (Wells 1 and 2)
State 10-1
-Flow rate of 24,214 MCFGPD water free
-The average gas analysis showed:
Helium 7.1321%
Nitrogen 77.0837%
CO2 4.0183%
Methane and other assorted minor gases. 2.6512%
State 16-1
-Flow rate of 1,251.2 MCFGPD water free
-The average gas analysis showed:
Helium 4.0904%
Nitrogen 90.2742%
CO2 0.0063%
Methane and other assorted minor gases. 3.5535%
McCAULEY FIELD (Well 4)
Chevlon Well 11-1
-Flow rate of 1587 MCFGPD water free
-The average gas analysis showed
- HELIUM 1.137% - Nitrogen 94.6536%
- Methane 3.1311% -
- Ethane .2732%
- CO2 .1428%
- O2 .6623%
[END DME PRESENTATION INFORMATION - RESUMING MY COMMENTS]
Positives:
-We should be seeing lots of drilling news very soon regarding 3 additional Well 4 offsets.
-DME appears to have confidence that the processing facility will be in place to process "McCauley Field" gas in about 6 months (though I'll feel a lot better about this timeline after they actually commence construction, which should mean the design is finalized).
-in EM interview, RR said that the Well 4 info and plan should enable them to move forward with customers very soon.
-in EM interview, RR affirmed they still have plenty of cash (about $26M) to execute their plan. Still no plans or expectation to dilute.
Negative: Not really new information at this point, but it appears that production at the "Rohlfing Field" will be delay a full year from the original forecast.
I expect others who are more knowledgeable will may have other key insights after distilling all of the new information of the last week.
Personally, the Rohlfing Field timeline is disappointing, but the economic value is still there (just pushed out 12 months). I am very glad that they will be able to bring the McCauley Field online relatively soon in the interim though. Even if limited to the McClauley Field gas for now, commercialization (actual customer contractts, actual production, actual processing, actual sales and actual revenues) should fundamentally change the perception of this company. I haven't sold any shares, and would like to add to my holdings as additional liquidity becomes available (especially at the current level).