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Bullboard - Stock Discussion Forum Desert Mountain Energy Corp V.DME

Alternate Symbol(s):  DMEHF | V.DME.WT

Desert Mountain Energy Corp. is a Canada-based resource company. The Company primarily focused on exploration, development and production of helium, hydrogen and noble gases. The Company holds properties under lease for helium, oil and natural gas in the Holbrook Basin of Northern Arizona. The Holbrook Basin Helium Project comprises +1000,000 acres of key Helium prospects under lease. Located... see more

TSXV:DME - Post Discussion

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Post by HeliumHigh on Jan 11, 2023 10:32am

Indicator?

Maybe I'm going out on a limb here, but I see the exercise of these land options potentially as a sign that things much be going relatively well in getting the plant online so far. If DME was experiencing issues that would cause major delays, let alone fundamental problems, then DME's cash situation would likely suddenly be an issue and I would be surprised that they would actually expend cash right now to exercise these options. 


On the other hand, until the plant is actually producing high-grade helium from its wells, DME itself still really doesn't know what it doesn't know. And perhaps the land options exercise issue is being forced right now because those options are up against an expiration date. Hard to say...


Really just some speculative reading of the tea leaves, but that's all anyone has right now while we patiently await news on the upcoming expected milestones.

Comment by rmreism on Jan 11, 2023 10:37am
I agree. Land purchase indicates everything going according to plan. Time will tell.
Comment by fredo1 on Jan 11, 2023 11:03am
All plausible comments High. To accommodate another 4-5 wells would require an expansion of the MF processing plant. Agree?
Comment by HeliumHigh on Jan 11, 2023 11:36am
I think I recall recent comments from DM that the existing wells "could" represent about 1/3 of the processing facility, so I would actually expect another ~10 producing wells could be supported by the current MF processing plant without further expanstion (which in theory should be relatively simple due to its modular design, but we'll see).  Moreover though, until we actually ...more  
Comment by fredo1 on Jan 13, 2023 1:49pm
If 6 wells only produce 3 mmcf/d, the implied flow rate is much lower than I expected.
Comment by HeliumHigh on Jan 13, 2023 2:29pm
The flow rates for those wells are much lower than Well #1, which appears to have an immensely higher flow rate.  Remember that the gas composition for Well #1 requires a more robust/expensive processing plant than this first one, but that value should still be ultimately unlocked after this initial plant and the associated wells are producing initial cash flows for the next processing plant. ...more  
Comment by ukrop13 on Jan 16, 2023 1:33am
This post has been removed in accordance with Community Policy
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