RE:DESERT MOUNTAIN ENERGY COMPLETES DRILLING OF WELL #7 For me, one of the most important comments in the press release is the following;
"With the completion of Wells #4, 5, 6 and 7, DME now feels that it has identified the outer boundaries of the McCauley Helium Field and owns all necessary leases"
The company developed a series of hypothesis about what formations were under that area of the desert and the manner that these were distributed. Both Helium and Hydrogen gasses are generated by various radioactive decays and not only do the types of radioactive materials impact impact the proportion of Hydrogen, Helium and other nobel gasses, but you also need to have the appropriate geological structures to capture these and hold the pressures that are being observed. I do not expect that each of these 7 wells were drilled with the intention of extracting usable resources from each but rather to better understand the underground morphology. Helium revenue generation will come from the hole where returns can be optimized and I expect that the Hydrogen rich zone will also be tapped from another well. The 7 for 7 success rate means that many of the hypotesis that the company had regarding the nature of the underground resources is correct and it is likely that this IP can be very useful to find other resources in the future. Once the revenue taps get turned on in Q3 the upside in the market cap of this company will exceed expectations.