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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 Buyhigheatchipson Sep 21, 2021 9:40am
257 Views
Post# 33891634

RE:New DME Investor Presentation

RE:New DME Investor Presentation

Thanks for posting HH.

See the cash reserves reminds me of how important it was that we triggered that warrant exercise. Proud to say I was there at the buy in the last seconds that day.

Still long here needless to say. Wish *I* had more cash reserves lol. 


HeliumHigh wrote: Here is the link to DME's new investor presentation:  https://desertmountainenergy.com/wp-content/uploads/2021/09/DME-Investor-Presentation-09162021.pdf

A couple of key bits:

[BEGIN DME PRESENTATION INFORMATION]

PLAN TO PRODUCTION
- Drill Wells #5, 6 & 7 in McCauley Field
- Acquire a processing facility estimated cost between $4.5 m and $6.5 m
- Production from 4 wells in the McCauley Field late Q1 or early Q2
- Drilling Gunner Dome Prospect wild cat well
- Drill 2 or 3 off setting wells in the Rohlfing Field
- Production for 4 to 5 wells in the Rohlfing Field starting Q4 2022 or Q1 2023
- Bring on 60 to 70 new wells over a 5 year period

ROHLFING FIELD (Wells 1 and 2)
State 10-1
-Flow rate of 24,214 MCFGPD water free
-The average gas analysis showed:
      Helium 7.1321%
      Nitrogen 77.0837%
      CO2 4.0183%
      Methane and other assorted minor gases. 2.6512%

State 16-1
-Flow rate of 1,251.2 MCFGPD water free
-The average gas analysis showed:
      Helium 4.0904%
      Nitrogen 90.2742%
      CO2 0.0063%
      Methane and other assorted minor gases. 3.5535%


McCAULEY FIELD (Well 4)
Chevlon Well 11-1
-Flow rate of 1587 MCFGPD water free
-The average gas analysis showed
      - HELIUM 1.137% - Nitrogen 94.6536%
      - Methane 3.1311% -     
      - Ethane .2732%
      - CO2 .1428%
      - O2 .6623%

[END DME PRESENTATION INFORMATION - RESUMING MY COMMENTS]

Positives
-We should be seeing lots of drilling news very soon regarding 3 additional Well 4 offsets. 
-DME appears to have confidence that the processing facility will be in place to process "McCauley Field" gas in about 6 months (though I'll feel a lot better about this timeline after they actually commence construction, which should mean the design is finalized).  
-in EM interview, RR said that the Well 4 info and plan should enable them to move forward with customers very soon. 
-in EM interview, RR affirmed they still have plenty of cash (about $26M) to execute their plan.  Still no plans or expectation to dilute.  

Negative:  Not really new information at this point, but it appears that production at the "Rohlfing Field" will be delay a full year from the original forecast.  

I expect others who are more knowledgeable will may have other key insights after distilling all of the new information of the last week.

Personally, the Rohlfing Field timeline is disappointing, but the economic value is still there (just pushed out 12 months).  I am very glad that they will be able to bring the McCauley Field online relatively soon in the interim though.  Even if limited to the McClauley Field gas for now, commercialization (actual customer contractts, actual production, actual processing, actual sales and actual revenues) should fundamentally change the perception of this company.  I haven't sold any shares, and would like to add to my holdings as additional liquidity becomes available (especially at the current level).  

 

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