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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 Dec 13, 2022 5:16pm
217 Views
Post# 35169589

RE:RE:RE:RE:RE:NR

RE:RE:RE:RE:RE:NRNear term, these results are certainly a net positive.  To make the most of the (hopefully) imminent processing facility (which it appears will be operating well below capacity if fed only by the current wells), we want to run as much additional eligible input gas through this facility as possible.  More eligible input gas = more total helium production = more cash = good!

That being said, based on all of the apparent excitement and vague comments about Gunnar Dome, I can't help feeling a bit disappointed about the helium percentages.  I'm certainly glad this well (and seemingly a new field) seems economically viable (yet another non-empty hole!), but I was hoping for something really impressive in these results (whether helium %, flow rate, or number/size of zones), which I don't see within the information that has been made public.  I feel like the lower helium percentages somewhat dilute the narrative (on a headline basis) of the amazing helium story that DME has.

I continue to wonder about the information (regarding Gunnar Dome, but also other wells) that has not been made public.  One possibility is certainly that there isn't good information to share beyond what has been made public.  However, I am particularly mindful that DME is still very much a small and capital constrained enterprise.  It has neither the human bandwidth nor the financial capital to pursue and unlock all of the economic opportunities in front of it.  There remain substantial competitive risks that larger companies with more resources could swoop in and exploit opportunities based on what DME shares with the outside world before DME is really in position to do so (or at least secure all of the rights that would make it unattractive for someone else to try).  

I can't underscore how important it is (in my opinion, at least) for this processing facility to get commissioned and start generating helium/cash without further major delays/hiccups.  Until DME has sufficient cash to really execute on what it knows (and continues to learn), I absolutely don't want them sharing with the outside world any information that would enable others to potentially jump ahead of DME's plans.  

I'm not selling shares anytime soon anyway, so I am content to remain a bit in the dark for a while if it also keeps potential competitors in the dark as well.
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