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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 Greasemonkey65on Jul 13, 2021 1:05pm
240 Views
Post# 33536261

RE:RE:RE:RE:Ellis Martin Report July 13 2021

RE:RE:RE:RE:Ellis Martin Report July 13 2021

Great Summary. Having spent many decades drilling and developing natural gas fields I can maybe fill in a bit about RR’s lack of info on the plant. Until you know the size of the reserves, rate of extraction (a market issue in part), efficiency of recovery of the He and other economic gases, you dont know how big to make the plant. RR originally referred to a skid mounted (ie portable, more or less) solar powered modular plant that could be expanded and moved to other pools. This made sense for the initial wells 1-3, less so #4, and certainly not this new discovery. So they may literally be going back to square one for a development plan. This will require a better handle on the reserve size of the new wells, requiring flow testing of individual zones. You usually arent allowed to produce all the zones at once, as pressure differences can create cross flow within the zones. This can be resolved a bit by running multiple sleeves of casing in the well to flow zones separately, but unless the initial well casing was big enough this has limited options and adds a lot more expense).  So a good problem, which pool top develop first? Maybe #4 is the way to go, or #6 etc, and not the first few.  Maybe keep drilling more wells and testing new prospects. Maybe two+ modular plants. More land? Expect radio silence while DME noodles on a new development plan. Thats what I would do.  But as I say. all good “problems”.

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