Desert Mountain Energy Corp V.DME

Current field work

[Buyhigheatchips]

Any guesses on what they're up to? I had the thought that they might be doing the additional testing on wells 1 and 2. That might put some mojo back in this sp considering the higher percentages.

[Deerock]

I speculate that they are finalizing the locations of the development wells for the McCauley field. I think I remember Rob saying if they had gone ahead with the original permits and locations for wells 5 and 6 without learning what they did from well 4 they would probably have run into low permeability or something of that nature. I think the main issue with that is a very low producing well

[Buyhigheatchips]

That sounds eminently reasonable to me. I think the market will be very happy as long as that timeline is being proved out.  Longer term I will be be looking to see that they are resourced to finish 10 wells a year as they've indicated in the plan. They've been conservative about staffing up the company and I think that was prudent but we're clearly shifting into the next phase

[Buyhigheatchips]

Here's a fun (but ridiculous) thought experiment... Say half of that revenue gets converted into earnings of $20M. Now apply TSLA's PE ratio of 400 to get a market cap of....$8B (!) Why not? We're high tech (rockets, MRIs, semiconductors) and we'll be growing fast too :D Yes, this says more about TSLA speculators than us.

[Deerock]

That's branding power for you. I would think Elon could IPO an ice cream parlour and it would shoot up to a 400 P/E ratio. DME is just not that famous and will probably willl never be as flashy as the cyber truck.

[Buyhigheatchips]

4% helium!!  

[Jimmyjohn1]

@buyhigheatchips Nice call!

[Bertie20]

Nice update. It's worth noting that 4% helium is what they had announced already on well 2, but the total absence of CO2, methane and non-helium noble gases is different and is a plus. How soon this zone in well 2 can be tied into the production facility is an open question, but at 4.2% helium it's going to be very profitable (and cheap to bring online). 

[TiredofWating]

Agreed.   It seems the muted response suggests the market wants to see the steps and timeline to production.   

[Deerock]

I'm thinking this well will come on online in the time frame well 4 and the refinery will be ready. I remember Rob saying that trucking the stripped gas from a well and bringing to the refinery site is an option. So as long as they can get the equipment to strip off the nitrogen and whatever else they can at the well in short order, we'll have this well producing within the same 6-8 month