TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, Oct. 30, 2024 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (U.S. OTC: DMEHF) (Frankfurt: QM01) From the President of the Company. Desert Mountain Energy is pleased to announce that the West Pecos Slope Abo Gas Field has been successfully operational for over two months. The plant is autonomous, with an AI component coordinating the integrated systems necessary to process the various crude gas components being produced by the wells.
DME's technical team has worked through numerous challenges since the plant's start-up in June 2024. The team encountered a range of challenges, including malware and ransomware, wiring problems, and components not meeting engineering standards. The Company enlisted an automation team to rewrite software, enabling the company to avoid ransom demands from the malware creators. Upgrades were made to wiring, switchgear and bottlenecks in the system were addressed. The plant complies with the latest emission regulations for 2025 at both state and federal levels. The Company will implement additional upgrades as needed in response to any new regulations that may be enacted.
The West Pecos Slope Abo Gas Field, which was initially producing at a rate of 105 mcf/day at the time of acquisition on July 1, 2023, underwent immediate and cost-effective well maintenance procedures. The use of acid and surfactant sticks increased production levels to a peak of 1.5mmcf/day. The field also has a permitted water disposal well, significantly reducing expenses. Currently, the field produces approximately 30 bbls of salt water /day (SW/D) 0.1577 bbls or approximately 6 gal/day per well. Gas wells in Southwestern New Mexico can produce hundreds of bbls of SW per day, impacting revenue and reducing profits. To further enhance revenue and profits, the Company has deployed its in-house workover rig for well enhancements, with the goal of ramping up gas production and reducing saltwater output. The installation of booster compressors (previously acquired) from the wells farthest from the plant site is anticipated to amplify gas production.
Our geological team continues to identify hydrogen opportunities in Arizona and New Mexico. We continue to analyze data alongside specific downhole well log information to understand the distinct geological conditions required for elevated hydrogen levels, to potentially reproduce these results in other wells or locations on our leases. Current geological data indicates that the elevated hydrogen levels are likely confined to specific geological settings within our leases. In contrast to the hydrogen production observed in Arizona, where indications suggest ongoing production from above the Precambrian, the hydrogen production in New Mexico appears to originate from the Precambrian rock.
DME Seeks to Utilize Nearby Stranded Gas Wells for Data Center Power Source
The Company is working with a private company to identify stranded gas wells in current operational areas that have the potential to be used as a power source to operate small data centers.
New Auditor Visits New Mexico Operations for Due Diligence
Davidson and Company LLP, the new auditor for DME, conducted a visit to the West Pecos Slope Ado Gas Field operations in early October as part of their due diligence process to gain insights into the business and the challenges we face.
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 and natural gas. The Company is focused on helium extraction from different raw gas sources in an environmental and economical 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.
