Desert Mountain Energy Corp V.DME

Nearby helium development activity report - Proton Green LLC

[HeliumHigh]

I learned about a nearby helium developmemt effort today and wanted to share it with the group here.  Thoughts/comments are certainly welcome (and perhaps a welcome target/distraction for the analytical abilities of the group here while we wait on additional info from DME).  

The company in question here is Proton Green, LLC (https://www.protongreen.com/), a private company.

St. John's Basin; Existing Kinder Morgan Wells.  Proton Green purchased ownership of 28 existing wells in Apache County, Arizona in a "carbon storage basin located on 152,000 acres" referred to as the St. Johns basin (28 miles by 15 miles). Kinder Morgan originally drilled these wells this for CO2 production that would then be pipelined over to West Texas and used for injection in the Permean Basin for hydrocarbon extraction.  However, Kinder Morgan later suspended the project due to "market conditions".  The wells were generally drilled in 2011-16, have been in a state of having been plugged and abandoned.  Proton Green now intends to go back into these wells to produce and sell helium. 

Here are some potentially interesting links for additional background/context:
https://ir.kindermorgan.com/news/news-details/2014/Kinder-Morgan-to-Invest-Approximately-1-Billion-to-Expand-Vast-CO2-Network/default.aspx
https://www.abqjournal.com/530879/kinder-morgan-withdraws-co2-pipeline-application.html
https://www.azdeq.gov/sites/default/files/factsheet_st_johns.pdf

Helium. Proton Green claims that the historical well data indicate that helium concentrations across the wells range from the 0.1-0.2% range up to about the 1.5-1.75% range.

Hydrocarbons; CO2. Proton Green claims that the gas does not include significant amounts hydrocarbons, but the wells gas obviously includes substantial amounts of CO2.  The company indicates that it intends to re-inject the CO2 back into the wells.  Further to this point, the company is also trying to serve as a regoinal CO2 sequestration hub, and has apparently been in contact with nearby power plants to this end.  To re-injection carbon into the basin, the company is applying for a Class 6 injection permit.  

Water. Kinder Morgan's testing apparently indicated that there was some water, but Proton Green claims it was "minimal".  Kinder Morgan apparently found it necessary to apply for a Class 1 non-hazardous injection well, and Proton Green says that it may need to do this as well.  Proton Green acknowledges that it will need to go back into the wells to further evaluate the water situation.  

From what I can tell, Proton Green seems to face quite a lot of risks and variables, and in any event seems to be quite a long way off from being able to commercially produce/sell anything.  But the team seems somewhat credible (they seem relatively well spoken with be composed of several different individuals in different roles) with potentially some decent money behind the effort (someone had to fund the purchase of these assets from Kinder Morgan...). 

I don't really see this as any real threat as it currently stands, but I thought it was interesting enough to share.  I myself have been really curious to see what third party activities might develop as DME progresses.

[deercreekguy]

Thanks Helium for sharing the information.  It is for the occasional offerinf like this that keeps me coming back to this board.  I, unfortunately rarely have any independent insights, so I really appreciate it when those who do share their offerings.  Stay long.  Regards, Deercreekguy