TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, May 31, 2023
/CNW/ - DESERT MOUNTAIN ENERGY CORP. (the "Company")
(TSXV: DME) (U.S. OTC: DMEHF) (Frankfurt: QM01) From the
President of the Company. The Company wishes to apprise
shareholders that it has continued to complete planned work as
previously outlined, per the use of proceeds from the last
financing. "The Company is in an excellent financial position,"
said Robert Rohlfing, CEO of DME.
"There is approximately $19.7 CDN
million cash on hand with significant percentages tied up in
various guaranteed interest-bearing accounts."
The wells feeding the McCauley Helium Processing Facility were
swabbed down with no formation water being detected. The water
removed showed signs that it was from drilling and completion
operations and not from the targeted formations. A full-size,
helium gas tube trailer is on-site for production rather than the
smaller tanks for run-up testing.
As previously outlined in the use of proceeds, the Company has
acquired additional heavy trucks and additional trailers. Trailers
to haul the Company's produced raw crude gases are being modified
to haul crude gas from our other wells to the McCauley Helium
Processing Facility. The Company expects to take delivery of a
workover rig, capable of swabbing and light workover functions, by
the end of June 2023. These specific
vehicles were selected to help optimize and reduce the wait time to
accomplish specific tasks. Our trucking company continues to
improve usage performance. The signing of a long-term agreement to
haul heavy gas field compression units for a major company in the
four corners region and Colorado
is significant.
Our hydrogen drilling partner was encountering market conditions
slowing their financing down. The Company had already planned for a
possible contingency and will be drilling two wildcat wells,
specifically targeting helium, starting towards the end of
June 2023 to the middle of
July 2023. One well will be drilled
on the south Winslow Prospect and the other well will be on the
O'Haco leases. Both wells are located within approximately ten
miles of the McCauley Helium Processing Facility. Depending on the
outcome of those drilling efforts, initial production will be
trucked to the McCauley Helium Processing Facility. DME anticipates
drilling the shallow hydrogen/helium wells towards the end of
August 2023.
The Company has continued to go forth with multiple
archeological studies required for drilling and production on our
state leases. This extensive work and separate permitting are
required, prior to requesting actual drilling permits, from the
State of Arizona Oil & Gas Conservation Commission. We are also
engaged in geophysical studies across NE
Arizona and other states. Those activities are in
conjunction with private oil & gas companies currently
drilling. The Company is not engaged or in partnership with those
companies in drilling wells for hydrocarbon production. The Company
expends very small monies to have independent geologists with mass
spectrometers on location during drilling operations. Thus far our
efforts have found the presence of helium in areas previously
untested for both helium and hydrogen. Looking at the entire
spectrum of elements is an established practice by the Company and
provides our geological team with the maximum data by which to make
decisions.
The Company has identified and ordered the longest lead time
components for two processing facilities. The next processing
facility is planned to have liquefication capabilities in order to
process the noble gases in addition to being able to sell liquified
helium to meet specific customers needs.
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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content:https://www.prnewswire.com/news-releases/desert-mountain-energy-provides-operations-update-301838558.html
SOURCE Desert Mountain Energy Corp.