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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 HeliumHighon Feb 16, 2022 7:40pm
207 Views
Post# 34436100

RE:Interview

RE:Interview Post-interview thoughts:
1.  Not much hard data to parse that I can tell (perhaps some indirect inferences could be made though).
2.  3 sets of casing "perfectly" in place at the well.
3.  DME has a very good drill rig and team operating on these well sites right now.
4.  DME found what it was hoping to find (i.e. helium accross 18 zones, 6 that were "really meaningful") with some surprises (i.e. increased thickness in certain zones, as well as some unanticipated zones).
5.  Most importantly, this again validates that RR really has mastery in his ability to understand the relevant geological formations and to identify where to find/access the helium.  RR is this company's unfair advantage (along with having the 1st mover advantage in locking up rights) relative to any other potential operators.

While some might be troubled by the absence of upward movement in the stock price in connection with "mundane" announcements like this one, I am very content to see the company's activities/efforts continue on plan.  From a path to production/revenue standpoint, the greatest risk point is probably shifting to getting the processing equipment onsite, assembled and functioning properly.  

Despite the recent investor presentation, from more recent interviews I'm not expecting big upcoming announcements regarding new customer agreements (as much as I would like to see them) in the near term.  It sounds like (1) DME is content with the US government as its initial customer, and (2) the really valuable commercial opportunities don't really materialize until we are producing 99.9999% grade helium, which is a point that seems further off (I'm not currently clear on how far off though).
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