RE:Ellis Martin Report: Desert Mountain Energy’s Don Mosher Here are my key take aways from this interview:
1. DME plans to have 5 wells online Q4.
2. Average revenue per well US$8.9M/year (if selling crude helium at current $280 MCF):
-$44.5M/year in helium revenue for 5 wells (note: my calculation based on information above, not actually stated in interview)
3. During summer 2021, DME is building a $12M refining facility and $1M solar power plant to refine helium:
-Refined helium (up to 99.9999% pure) sells for up to $1,000-$3,000 MCF (note: $3,000 was referenced in this interview, but I have heard $1,000 in prior interviews, so I included both here to show some helium price sensitivity analysis)
-$159M/year in helium revenue for 5 wells (selling refined helium at $1,000) (note: my calculation based on information above, not actually stated in interview)
-$476M/year in helium revenue for 5 wells (selling refined helium at $3,000) (note: my calculation based on information above, not actually stated in interview)
4. DME plans to drill and bring online 60-70 wells over next 5 years:
-$1.9B/year in helium revenue for 60 wells (selling refined helium at $1,000) (note: my calculation based on information above, not actually stated in interview)
-$5.7B/year in helium revenue for 60 wells (selling refined helium at $3,000) (note: my calculation based on information above, not actually stated in interview)
Pretty astounding stuff...