TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, Oct. 30,
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 is pleased to announce that the West Pecos Slope Abo Gas
Field has been successfully operational for over two months. The
plant is autonomous, with an AI component coordinating the
integrated systems necessary to process the various crude gas
components being produced by the wells.
DME's technical team has worked through numerous challenges
since the plant's start-up in June
2024. The team encountered a range of challenges, including
malware and ransomware, wiring problems, and components not meeting
engineering standards. The Company enlisted an automation team to
rewrite software, enabling the company to avoid ransom demands from
the malware creators. Upgrades were made to wiring, switchgear and
bottlenecks in the system were addressed. The plant complies with
the latest emission regulations for 2025 at both state and federal
levels. The Company will implement additional upgrades as needed in
response to any new regulations that may be enacted.
The West Pecos Slope Abo Gas Field, which was initially
producing at a rate of 105 mcf/day at the time of acquisition on
July 1, 2023, underwent immediate and
cost-effective well maintenance procedures. The use of acid and
surfactant sticks increased production levels to a peak of
1.5mmcf/day. The field also has a permitted water disposal well,
significantly reducing expenses. Currently, the field produces
approximately 30 bbls of salt water /day (SW/D) 0.1577 bbls or
approximately 6 gal/day per well. Gas wells in Southwestern New Mexico can produce hundreds
of bbls of SW per day, impacting revenue and reducing profits. To
further enhance revenue and profits, the Company has deployed its
in-house workover rig for well enhancements, with the goal of
ramping up gas production and reducing saltwater output. The
installation of booster compressors (previously acquired) from the
wells farthest from the plant site is anticipated to amplify gas
production.
Our geological team continues to identify hydrogen opportunities
in Arizona and New Mexico. We continue to analyze data
alongside specific downhole well log information to understand the
distinct geological conditions required for elevated hydrogen
levels, to potentially reproduce these results in other wells or
locations on our leases. Current geological data indicates that the
elevated hydrogen levels are likely confined to specific geological
settings within our leases. In contrast to the hydrogen production
observed in Arizona, where
indications suggest ongoing production from above the Precambrian,
the hydrogen production in New
Mexico appears to originate from the Precambrian rock.
DME Seeks to Utilize Nearby Stranded Gas Wells for Data
Center Power Source
The Company is working with a private company to identify
stranded gas wells in current operational areas that have the
potential to be used as a power source to operate small data
centers.
New Auditor Visits New Mexico Operations for Due
Diligence
Davidson and Company LLP, the
new auditor for DME, conducted a visit to the West Pecos Slope Ado
Gas Field operations in early October as part of their due
diligence process to gain insights into the business and the
challenges we face.
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 and natural gas. The Company
is focused on helium extraction from different raw gas sources
in an environmental and economical 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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SOURCE Desert Mountain Energy Corp.