DESERT MOUNTAIN ENERGY MAKES STRATEGIC MOVE TO ADDRESS RIG MOVING INFLATION & AVAILABILITY ISSUES
Desert Mountain Energy Corp. has announced the acquisition of five heavy haul rigs to enhance the movement of drilling and plant processing equipment. The investment of over USD 700,000 for rig mobilization illustrates rising costs, with expenses per well increasing from $26,000 to $164,000 over 18 months. This strategic purchase aims to mitigate inflation and supply chain disruptions while generating additional revenue through equipment contracts. The company is also finalizing the establishment of a separate entity for the rig operations, further solidifying its financial position.
- Acquisition of five heavy haul rigs enhances operational efficiency.
- Investment addresses rising rig mobilization costs.
- Additional cash flow expected from contracting out rigs.
- Significant increase in rig mobilization costs over time.
TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, April 14, 2022 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (OTC: DMEHF) (Frankfurt: QM01) From the President of the Company.
The Company is pleased to announce that it has purchased five heavy haul rigs to move drilling and plant processing equipment. The Company has lost critical time waiting to get drilling equipment moved and has seen a large increase in heavy haul rig costs. DME spent in excess of USD 700,000.00 to move rigs and equipment on the first seven wells. Initially, the rig mobilization on Well #1 was approximately
"Management has taken advantage of a healthy treasury to combat inflation and supply chain issues," says Robert Rohlfing, CEO of Desert Mountain Energy Corp. "This acquisition not only solves those issues but will provide additional cash flow. The fleet will be contracted out when not being used by the Company."
ABOUT DESERT MOUNTAIN ENERGY
Desert Mountain Energy Corp. is a publicly traded resource company primarily focused on exploration, development and production of helium, hydrogen and noble gases. The Company is primarily looking for 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.
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