Desert Mountain Energy Corp V.DME

Ellis Martin Report: Desert Mountain Energy’s Don Mosher

[TsuyaJ]

https://desertmountainenergy.com/ellis-martin-report-desert-mountain-energys-don-mosher-tsx-vdme-otcdmehf-helium-in-arizona/

[HeliumHigh]

Here are my key take aways from this interview: 1.  DME plans to have 5 wells online Q4. 2.  Average revenue per well US$8.9M/year (if selling crude helium at current $280 MCF):                 -$44.5M/year in helium revenue for 5 wells (note: my calculation based on information above, not actually stated

[TiredofWating]

Just to add that: 1) Hole 4 is being drilled this week; 2) Reservoir analysis (how much helium is there) to be completed by June. Results of both should be catalysts before production in Q4.

[Buyhigheatchips]

Two and half weeks for warrant holders to exercise. Other than hitting a dry hole that will be it for downward price pressure...

[mrfrankl]

What do we think the profit margins on that will be?

[Bertie20]

Hi mrfrankl. Regarding your question on profit margin, Helium One provided some useful info regarding their planned helium processing plant's operational costs. They are estimating OPEX of $15-20 per m cu ft. Which, if you consider a crude helium price of $280 per m cu ft, and a processed helium price of well over $1,000 per m cu ft, is peanuts.  To be fair, I'm not sure how their

[jrk8888]

Thanks for posting. Looks like it's going to be a busy summer. 

[Bertie20]

The other thing that stands out to me are the details he provided regarding the cash situation. The fact that DME no longer need to buy their own truck fleet is a god-send, as it has brought total capex to first production down to $23m. Don Mosher says that, following the forcing of the warrants, DME should have something like $27m in the bank. The picture is clouded a little by whether he is

[HeliumHigh]

Do you know how they plan to transport the gas from each well site to their refining facility? Unless they are building a system of gas lines, I assume they'll need some trucking to move the extracted gas.

[Bertie20]

There's a small process schematic on the second page of the below leaflet. https://desertmountainenergy.com/wp-content/uploads/2021/04/DESERT-MOUNTAIN-ENERGY-CORP..pdf It mentions "trucks from other wells", so I presume they will be at least trucking some of the gas from the wells to the processing plant. Wells 4,5 and 6 are apparently in very close proximity to the plant, so I'

[HeliumHigh]

Thanks, Bertie - very helpful. Based on the schematic, it appears (1) some preliminary separation will happen at individual well sites, (2) some wells (presumably those in close proximity to the refining facility) will be connected directly to the refining facility system, and (3) preliminarily separated gas from other wells will be trucked over. I wonder if DME will add future refining ability at