TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, Jan. 22,
2024 /CNW/ - DESERT MOUNTAIN ENERGY CORP. (the
"Company") (TSXV: DME) (U.S. OTC: DMEHF) (Frankfurt: QM01)
From the President of the Company. Desert Mountain
Energy Corp. (DME) is pleased to announce the successful reassembly
of its natural gas and helium processing and extraction facility.
The Company has received the final operational permit from the BLM.
The company has made several plant modifications to enhance safety
and accommodate upcoming regulatory changes in 2024. These
modifications have allowed DME to significantly increase overall
gas production and begin plant operations for total natural gas
throughput. Plant modifications include the ability to
automatically bypass the main gas portion of the gas processing
facility and continue natural gas sales. The West Pecos Field Plant
has been specifically designed to meet a variety of customer purity
requirements for gaseous helium, ensuring a maximum return on
investment.
The purchase of the West Pecos Abo Gas Field included an
existing offtake contract that requires all gas to be sold under
its terms for the remaining short term of the contract. Depending
upon the outcome of ongoing discussions, the Company may need to
wait for the expiration of the current gas purchase agreement on
05/31/24 to begin full-time helium
extraction and sales. The Company will not litigate any
disagreements with the offtake partner and is prepared to wait for
the contract to expire. While the Company is negotiating with the
current offtake partner, processed gas sale contracts are being
explored and negotiated directly with end users. As stated in a
previous press release, the closest gas transportation company has
modified and updated its existing line tap, which could be a very
advantageous connection. There is an existing line from the
outbound side of our processing facility to their line tap, which
is approximately 90 feet away.
Since taking over operations on 07/01/23, DME has significantly
increased gas throughput across the entire field, going from 104
MCFGPD to 1,341 MCFGPD in November
2023 and aiming for 1,500 MCFGPD in December 2023. This progress has been achieved
without significant capital investment, with 15 wells revitalized
at a cost of less than $150 per well
using foaming techniques. The company plans to further improve
production through well workovers starting in March 2024, with an average cost of $15,000 per well. DME is working towards the
near-term goal of exceeding 3,000 MCFGPD from existing wells and
perforations.
The Company has conducted a thorough review of open hole logs
and has identified numerous productive zones in various areas of
the field. In the West Pecos Slope Abo Gas Field there are 11
distinct zones within the Upper Abo Formation which have shown
productivity. On average, the total thickness of the Upper Abo
Formation in this field is 390 feet. Many wells have not reached
the Lower Abo or Wolfcamp Formations, but those that have indicated
multiple successful completions into specific zones. Of the wells
that have penetrated these formations, well records indicate
multiple successful completions into specific zones which were
constrained at the time of original drilling by spacing density
rules. The majority of those original concerns or constraints have
been addressed via rule/regulation changes and have since been
modified or removed and the Company looks to further enhance
long-term helium production through completions in those specific
zones. Future drilling plans will be addressed separately upon
release of the NI51-101 reserve report and 2023 audited financials,
for the year ending September 30,
2023.
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, natural gas and condensate. The
Company is focused on helium extraction from different raw gas
sources in an environmental and economic 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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content:https://www.prnewswire.com/news-releases/desert-mountain-energy-completes-reassembly-of-west-pecos-field-plant-302040363.html
SOURCE Desert Mountain Energy Corp.