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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 Engineersoilgason Aug 02, 2021 12:52pm
249 Views
Post# 33639990

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Thanks to ausumemath

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Thanks to ausumemathThank you for pointing out an embarassing overlook on my part.  When I read the reserve report where the evaluator uses an assumed gradient of .43 psi/foot to estimate pressure of 908 psi, I thought the data was not available.  Why use an estimate if you know the real number.

So i carefully re-read the full release and noted
 Well 1 had an ISIP of 900 psi right on normal gradient. It even said it flowed at 940 psi.That indicates to me a extremely high permability as the pressure drop would be extremely low to produce 24 MMCD.  That is a wow factor!
Well 2 had a pressure of 372 ISIP.  That is very underpressured (.2 psi/foot), similar to pinta dome.  They also discussed implications of the low pressure as both wells penetrate the lower pressured zone butb tested in only 1 well.
The pinta dome field had a 172 psi original pressure based on the press release or a gradient of 0.16 psi/foot. Underpressured similar to second well test. This impacts reserves quite a bit and drainage potential. 

This helps a lot in understanding reserves.  Interesting in the new release that they say the offset fields produce over 9 bcf of crude gas not 9 bcf helium as they continue to show on presentations.
Other papers show the fields produced 700 MMCF or 0.7 BCF helium , like in the report they have you download.  This paper also discuss the perils of potential underpressured reservoirs and that going deeper reduces that risk.  These 2 wells support that. Just look at cross section of basin and you can see the risk. The pinta dome field also had a water leg under the gas.




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