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It’s lighter than air, but its value is heavy. Helium is now shaping up to be an extraordinarily valuable resource, and one Company is sitting on of what could be one of the world’s top reserves.
Desert Mountain Energy Corp. (
TSX-V: DME,
OTCQX: DMEHF,
Forum) is a forward-looking company actively engaged in exploration and development of helium and oil & gas properties in the U.S. Southwest. Currently, the company holds properties in two major projects – its flagship Heliopolis Helium Project in Arizona’s Holbrook Basin and the KGSU Helium, Oil and Gas Project in Seminole County, Oklahoma. The Arizona project contains some of the highest grades of the element found anywhere in North America.
Stockhouse Media’s Dave Jackson was joined by company CEO, President and Chairman Robert Rohlfing to discuss the Company’s flagship helium projects in Arizona and Oklahoma, their eyepopping drill results, its one-of-a-kind business model, and the intriguing investment opportunities this versatile gas has to offer investors in the burgeoning New Green Revolution.
SH: To begin, let’s give our new listeners a rundown on the history of Desert Mountain…and for investors, a glimpse of where you are now since we last reported on the company in May.
RR: It truly has been an exciting time for DME and our Shareholders since the last conversation with you in May. The company has successfully drilled, completed and tested its first two exploratory wells in AZ.
SH: Can you give the details on the helium properties in Arizona and what that brings to the table from an investors point of view?
RR: These properties are located in deeper horizons enabling us to stay away from the traditional production within zones containing treatable water. This is important because this company is determined to protect the natural resources for the state of Arizona and its residents.
SH: For Stockhouse investors that may be new to the helium space, what kind of value and opportunity does it offer versus traditional mineral mining?
RR: Traditional mining requires many years of testing prior to any chance of actual cash flow from production. Helium is a lot simpler to place on-line once you find it. We are looking at establishing cash flow in the fourth quarter of 2021. What this means to a potential investor is that there is an excellent chance this company will have strong tap-flows and therefore the possibility of future dividends.
SH: And what are some of the key markets that helium serves?
RR: Right now with health being a worldwide issue the highest percentage of usage is for MRI and the medical industry, followed with computers, chip manufacturing, all of the space launches require it, military, bar code scanners and finally balloons if there is enough. That being said, there are new consumer uses being developed every day.
SH: In recent news the company announced the completion and testing of your first two helium wells in Arizona. What can you tell us about these results?
RR: Both of these wells tested with commercial grades of helium and very little of the aspects which can make processing much more costly. What this means is that our operational costs will help maintain lower expenses. Also, the percentage grades of helium are the highest found in this area since Pinta Dome in 1962. And that field operated for 13 years and with the higher pressures we encountered we hope that our production will run many years longer.
SH: And as a follow up to that, why is this new gas field discovery geologically significant in Northeast Arizona. Can you walk through this find?
RR: The first two wells confirmed our hypothesis on exactly what DME management felt was required to locate and develop commercial helium properties in AZ.
SH: With a $75 million-dollar market cap and strong assets in a rising and distinct market like helium…this looks like an intriguing stock compared to a lot of your peers?
RR: We are extremely blessed to be this far along so quickly. What sets us apart from our peers is our extremely favorable weather. This is important because we are building a solar powered generation plant.
SH: Your share price and trading volume has been steadily increasing – nearly a whopping 500-percent since late June. To what do you attribute these robust numbers?
RR: My dad always said, “God gave you a brain, use it” and this is an excellent example of that. Desert Mountain Energy is very much a team and we have combined our expertise in various areas to create maximum value for our shareholders.
SH: Please lets us know about the company’s long-term future plans and initiatives moving forward?
RR: We’re looking forward to placing the first wells online and generating cash flow in the fourth quarter of 2021 while increasing job opportunities for the community. It’s the company’s goal that upon recovering approximately 50% of the company’s hard costs of the power generation plant to donate 5% of that power to the schools in Taylor Snowflake and Winslow, Arizona. The vast majority of Desert Mountain Energy leases are located on state land in Arizona. The schools, hospitals and department of corrections are recipients of the royalties paid on the helium production. Desert Mountain Energy is a big supporter of education and we believe that children are the future of Arizona and we will continue to do what we can to help.
SH: Thanks for taking the time to speak with us today, Robert. Anything final to add for our listeners?
RR: Thank you for your time and we look forward to using Stockhouse to provide future updates on Desert Mountain Energy.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.