DESERT MOUNTAIN ENERGY PROVIDES PROGRESS REPORT ON WEST PECOS SLOPE ABO PROJECT IN NEW MEXICO
- Desert Mountain Energy Corp. confirms the delivery of all necessary components for the West Pecos helium processing plant and anticipates operational start-up in November. Gas flow has increased significantly, and additional workovers could enhance production. The company aims to increase production to meet its goal of 1,500+MCFGPD. The presence of natural gas carriers strengthens the company's position to explore potential end-user contracts. CEO Robert Rohlfing will be a speaker at the 2023 Helium Super Summit.
- None.
TSX.V: DME
The company, as previously communicated, has been focused on pigging flow lines, eliminating specific choke points, and conducting flow line maintenance. Work on the gas lines and on 12 specific wells has resulted in significant increases in gas flow. Management feels that of 188 total wells in the field, between 85-104 would be targets for additional workovers to increase production for both natural gas and helium. Actual results and time will dictate the final number of wells which could benefit from enhancement procedures.
The Company assumed control of operations on July 1, 2023, at which point natural gas production had declined to roughly 104MCFGPD. During the course of the flow line work carried out in the latter part of July, and throughout August and September 2023, gas sales were intermittently halted for a total of 10 days. Since the completion of that initial work, production levels have increased. In July 2023 DME averaged production of 275MCFGPD, with August and September 2023 averaging 822MCFGPD. DME systemically focuses on improving wells, plant line feed compressors and general maintenance to increase those numbers to meet our near-term goal of 1,500+MCFGPD. Anticipated increases in gas production for the long term will be achieved through more complex well workovers, which will be paid for using cash flow from field operations.
The acquisition of smaller-volume compressors was aimed at enhancing production from helium-rich wells. As mentioned in our earlier press releases on 06/19/23, 07/06/23, and 08/16/23, our geological team swiftly pinpointed and continues to evaluate wells suited for optimal helium production. Independent gas analysis conducted on chosen wells during and after workovers continues to ensure proper correlation between the gas analysis tests, originally provided to us by the seller. The Company is aware that initial helium and natural gas values will alter once production starts in our plant. As previously reported in press releases, helium was considered as an inert gas and as such, no value was ascribed to, or payment made to any former company as a produced marketable product. This implies that any helium values will need to be initially classified under PUD reserves. Management feels that continued geological study of well files will further pinpoint highly prospective zones for increased helium production. DME's position is that those reviews showing previously discovered zones and testing positive for helium will confirm a number of yet-to-be-determined additional drill locations as identified by previous operators. During the Company's initial review prior to purchase, some research indicated higher helium values on one or two of the wells which have since been found inaccurate. Consequently, this data has accordingly been included in our planned well workovers to maximize helium production.
Recent sampling and historical data suggest an initial average of
"Unforeseen obstacles led to the necessary relocation of our processing facility to our new gas asset in
Desert Mountain Energy Corp. is committed to not only adhering to the state and federal regulations concerning emissions and quarterly testing from field equipment but also going a step further. The company is entering into an agreement with a private company to remove the majority of the CO2 from field emissions and convert it cost-effectively to food-grade CO2. The operation will begin with smaller engines operating booster compressors before progressing to larger plant-sized compression and power generation. DME looks forward to collaborating with the
In addition, the company continues to work with our external hydrology firm in
Robert Rohlfing, CEO of DME, will be a highlighted speaker at the 2023 Helium Super Summit, scheduled to occur in
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.
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
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.
FAQ
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