TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, June 26, 2024 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (U.S. OTC: DMEHF) (Frankfurt: QM01) From the President of the Company. The Company is pleased to announce the commencement of operations at its helium processing plant on the West Pecos Field in New Mexico. The plant is currently separating helium from the natural gas stream and transferring it to an offtake trailer. The startup procedure will involve optimization and potential programming improvements, with an estimated duration of 60-90 days.
The Company is producing from specific wells and will add flow rates to the plant during the next 120-180 days. The gaseous mixture of the individual wells varies from well to well. This includes Helium, N-Pentane, N-Butanes, Hexanes, and condensate oils, besides the normal methane and associated mixtures. The plant had additional equipment added to account for these variations and the Company wants to ensure that the sensing equipment operates in the prescribed manner with varied flow rates and mixtures. Additional equipment and storage/recycle capabilities were added to remove the possibility of needless atmospheric release of any helium. The plant system permits DME to capture, recycle and enrich the overall final grade of helium from the plant to maximize return on investment and be good stewards of these resources. The plant was initiated at approximately 960MCFGPD and will gradually increase to the maximum capacity within the current plant redesigns. The initial truckloads will contain a mix of various helium grades, and DME will receive payment accordingly. DME continues to aim to achieve a final product of 99.9995% pure helium following the completion of the initiation process, with the intention of selling to targeted markets to optimize pricing.
The West Pecos Field acquisition closed on July 1, 2023. The purchase included a natural gas offtake contract (which expired May 31, 2024), covering 188 producing gas wells and gas collection system. Over the last 12 months, DME repaired roads, bush hogged around well heads and accompanied surface equipment, did minor work on 15 wells, replaced lines identified as probable to fail within 5 years and pigged the collection system. The Company is currently implementing in-line compression equipment that was purchased earlier to reduce line pressure and boost production from wells with higher helium content at choke points in the gathering system. Initially designed to extract helium from a nitrogen field using solar energy, the plant required significant modifications to switch the power source to natural gas from our field.
The commencement of plant operations enables the Company to pivot towards increasing production levels. Geological assessments have pinpointed zones with higher-grade helium in wells, with an emphasis on reducing any formation water produced, which will be integrated into the existing inventory. A team has been assembled to operate the Company's workover rig, targeting wells with elevated helium levels to enhance production from current sources.
The Company continues its efforts with Beam Earth Ltd. and other related companies for the production of both hydrogen and helium from its Arizona locations.
ABOUT DESERT MOUNTAIN ENERGY
Desert Mountain Energy Corp. is a publicly traded 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 economic manner supplying elements deemed critical to the renewable energy and high technology industries.
We seek safe harbor
"Robert Rohlfing"
Robert Rohlfing
Exec Chairman & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in polices of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward looking statements and information herein include but are not limited to statements regarding the Company's anticipated performance in the future the planned exploration activities, receipt of positive results from drilling, the completion of further drilling and exploration work, and the timing and results of various activities.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company and its operations to be materially different from those expressed or implied by such statements. Such factors include, among others, changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and the United States; financial risks due to helium prices, operating or technical difficulties in exploration and development activities; risks and hazards and the speculative nature of resource exploration and related development; risks in obtaining necessary licenses and permits, and challenges to the Company's title to properties.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of the Company's exploration operations, no material adverse change in the market price of commodities, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company does not intend to, and nor does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.
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SOURCE Desert Mountain Energy Corp.
