Desert Mountain Energy Corp V.DME

The Importance of Location/Geology

[HeliumHigh]

Pinta South Operating Company LLC was granted 10 drilling permits by the Arizona Oil & Gas Conversation Commission (AOGCC) between March and June 2020. 

At the most recent AOGCC meeting (last week), Pinta South reported that it had to apply for “shut in” status for all 10 wells.  From the comments at the meeting, a couple of the wells seemed to be misses (no helium).  The other 8 or so well had indeed yielded helium, but unfortunately for Pinta South were also producing a fair amount of water.  Pinta South reported that it needed to develop a plan to deal with the water (which would require additional permitting from other agencies - Arizona Department of Environmental Quality?) before it could proceed with further development efforts at its wells.  It sounded like this would take an extended period of time. 

While this is certainly a cautionary tale regarding exploration risks, I also continue to take great solace in the care and diligence that Robert has exercised over many years in selecting and securing particular areas that he has determined are best suited for helium production based on the relevant geology.  This seems to be proven out in the early data on wells #1 and #2 (and seemingly well #3 based on comments in interviews), and hopefully Robert’s knowledge, diligence and selections will continue to payoff for wells #4, #5 and #6.

[Fredo51545]

Who owns Pinta South?

[HeliumHigh]

From Arizona Corporation Commission filings: Pinta South Operating Company LLC's address is 17101 Preston Road, Suite 110, Dallas, TX.  Google indicates that this is not the address of a known resource company, but instead the address of a small (3 attorney) law firm in Dallas, Texas (which I assume represents the company).  Because the company is not represented by a more

[fredo1]

 That was some great response. Thank you. 

[GoldenArm]

HH excellent work. So basically Pinta south is owned by shell corps. Common in US and eventually when interest increases owners pop their heads out. RR's thinking on where to drill is looking for a specific geology (and it worked) and so far has said, in his Mar 4th interview, that the next 3 wells would be within a 5 mile radius of each other.  Wells 1 and 2 were to prove that the their

[CountOfMeltedCrisco]

This address in Dallas is one of those "all flash, no cash, rent-by-the-hour and 2 overworked 'receptionists' to answer your phone and a 100 others" mail-drops!   Draw your own conclusions.

[GoldenArm]

Yup. They are just waiting for someone to come knocking. I think DME has a different thinking as to where to drill and Pinta South is a wet location which is not good for Helium extraction.