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Desert Mountain Energy Corp V.DME

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

Desert Mountain Energy Corp. is a Canada-based resource company primarily focused on the exploration, development and production of helium, hydrogen, natural gas and condensate. The Company is focused on helium extraction from different raw gas sources in an environmental and economical manner by supplying elements deemed critical to the renewable energy and high technology industries. Its Holbrook Basin Helium Project comprises more than 1000,000 acres of key helium prospects under lease. Its West Pecos Slope Abo Gas Field and gas gathering system is located in Chaves County, New Mexico. The West Pecos Gas Field encompasses a vast infrastructure, including 188 wells, over 50 miles of gas collection lines, and 77,000 acres of oil and gas leases. Its secondary focus is developing hydrogen assets located within their helium fields.


TSXV:DME - Post by User

Comment by Bertie20on Apr 12, 2021 3:14pm
198 Views
Post# 32978936

RE:RE:The $30 Is The Today Price, Not the Future Price!

RE:RE:The $30 Is The Today Price, Not the Future Price!

I agree that the share prices mentioned are fantastical and wildly unlikely. But they're based on at least vaguely reasonable assumptions (using the best data available). To answer your points:
1) "There will be a minimum 15% fail rate on well drilling." 

FilPro mentions figures for 60 wells and 70 wells. Use the 60 wells figure ($250/share) if you want to factor in a 15% fail rate.

2) "remember also the millions of warrants coming at $3.50."

FilPro factored the warrants into his figures (the 79.4 million share figure includes the warrants triggered at $3.50).

3)  "not all wells will produce at even near the numbers that are being thrown around."

Probably true, and there's also the depletion rate to keep in mind. Nonetheless, in defense of FilPro, he's basing his numbers on the publicly available
figures based on $275 per mcf (see slide 21), and was updating them based on Robert Rohlfing's figure of $1,100.
https://desertmountainenergy.com/wp-content/uploads/2021/03/DME-Investor-Presentation-03292021-FINAL-.pdf

It's all probably pie in the sky, but FilPro's post does not deserve being dismissed out of hand. 



 

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