Desert Mountain Energy Corp V.DME

Does anyone understand the helium market DME is selling into

[Engineersoilgas]

With so much pie in sky numbers published think about this. 

1. DME says 26 million for first  5 wells and plant. Do they have the money to even start
2. Local competition for market. A company is producing hydrogen in the old fields and is asking for 9 more wells this year.  You can go look the permits and name, a private company. Paradox plant in Utah to not far from border and is now producing helium and they can go to 500 mcfd.  Their gathering lines run through northeast Arizona into New Mexico.  A helium plant is running in the DBK field in northeast Arizona 
3. These plants are not huge.  Below is link to one of the largest built in North America.  It can input approx 9,000 mcfd. So let's say we build this size and get 7 percent which 700 mcfd or about 5 trucks a day that hold 130 mcf.  That is a hugh volume to market. It's a hell of a lot of money too.  It will not be some local picking up a load  that is a huge commitment by a big name to take on that helium.  And since they do not show a huge storage tank in their diagram which costly and time consuming I not sure how this is going too work. I am worried it will be smaller volumes of input as I do not understand how this will be marketed.
We will make money and lots of it. But the company says around 9 million per well, 60 to 70 wells  that puts it about 630 million say over 20 years or about 32 million a year when things takeoff. This makes sense since this is what they said.  If we are this good, then hopefully we go big or put a whole bunch more units in to speed it up.
nice picture in article
In any business when prices go high many more options become attractive.  We are best positioned by are numbers so we should the best source. But a lot of work needs done to get the most value.  I like idea of a takeout 

https://www.linde-engineering.com/en/about-linde-engineering/success-stories/hybrid-process-to-recover-helium.html

[Bertie20]

I don't have time to counteract the misinformation in this post. I'll just point to the interview below: https://www.metalsnews.com/t1356293i "The five wells that we're bringing online, we expect will be generating about $50 million US a quarter in revenue"

[Engineersoilgas]

There price assumptions must be from la la land or they know something the rest of world doesn't. Most the helium sold in USA is 99.997% called grade A or Helium 4.7.  Helium 99.999% is called helium grade 5.  It has limited usage compared to the major sales product Grade A. I do not know the price for this product verses Grade A . In 2019, the estimated private price for Grade A

[12groundpounder]

They have $26 million left Over approximately 1 million needed to build a solar plan and $14 million to build the refinery. They saved $7 million on buying trucks to deliver the gas as the companies six of them with in 200 miles are huge and already have trucks and will pick it up for free. One of the companies out of all six could buy every lick of helium they could produce now and in the future.

[Engineersoilgas]

Thank-you giving the data on how we will finance this project. I think I understand and also learned about the warrants. Just so you know we will not be supplying MRI units.  We have a gas.  They use liquid. Why is liquid helium in MRI machines so crucial? Liquid helium cools down the superconducting magnet, which is the part of the MRI Scanner that generates high-resolution images

[ScaleofSale]

Are you ignoring or assuming that a liquefication process is not on the cards for DME? In terms of transport such a process allows for greater amounts and reduced costs. Not sure what your angle is here.

[fausthimself]

It's clear that his angle here is to shake loose investors out of their positions through spreading misinformation.  DME will not be selling balloon grade helium. They will be selling high grade helium to end users like rocket companies and tech companies. DME president Don Mosher said in an interview high grade helium has been sold for $3,000/mcf. 

[12groundpounder]

A lot of people are going to be wanting your shares like the people that wanted to put in $1 billion We are the number one rated primary producer with outstanding qualities that the institutions are interested in don't let the negative attitude Mr. engineer deceive you. You tell me why would institutions want to put in $1 billion into a $300 million company if it wasn't worth it right from

[12groundpounder]

Maybe he's being paid to shake Shares loose for himself And others who may not be in the share holders best interest.

[Engineersoilgas]

I have not been negative. Just trying to explain to people you are out to lunch.  I suspect you are the paid pumper spouting off misinformation.  To think people actually believe you can use gas to supercool an MRI close to absolute zero is pretty ignorant. Hence my comment do we understand the market. I have my shares. I want this not to be a pump and dump like you are selling it.  

[tylerod1]

Is there really a threat of somone buying up the land next door and just hoping there is helium under there without doing years of geological study?   If someone built a bigger plant down the street who's going to feed it? Seems far more likely they would just buy DME first and work their way out.  I too though am concerned about the processing facility since we haven't

[fredo1]

Someone has already built a bigger plant down the road. 

[tylerod1]

Who. 

[ScaleofSale]

To my knowledge, they are not selling anything yet. There are agreements in place which suggests the company knows, but until more relationships are made public and they are in a position to produce, it is complete speculation. I expect more to come ahead of Well 4 results. SP seeming to also indicate results are favourable. Next year is the year I believe this really starts  to build a

[12groundpounder]

They got taken over and the new company won't build smaller solar plants

[12groundpounder]

They got taken over and the new company won,t build smaller solar plants

[12groundpounder]

I didn't say they were using gas in an MRI Robert said the end users are willing to buy the gas and told they didn't need to liquify it. Maybe the end users have facilities to liquify it or use it as a gas. Some are so large they are hundreds of billions to a trillion in capitalization.google needs helium for liquid helium hard drive disks at their data centres and cloud operations.  

[12groundpounder]

How panisonic in their new MRI manufacturing facilities want heilium gas or liquid they are big boys why don,t you let them run their operations .I'm sure they know what they are doing and how they will handle the gas or liquid heilium with what compression or facilities.

[12groundpounder]

Some end-users told Desert Mountain Energy from an interview that they would take the helium as a gas and to not bother liquefying I guess they're desperately short and will take it just like it is. And that they would pick it up with their own trucks. Nice it's better to listen to the interviews that Robert Gives to get better details

[Engineersoilgas]

I hope they do.  That was my suggestion way back.  Their approach currently is ridulously low volume compared to the potential.  A liquification plant would take a while, but much better than there approach.