TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, April 1,
2024 /CNW/ - DESERT MOUNTAIN ENERGY CORP. (the
"Company") (TSXV: DME) (U.S. OTC: DMEHF) (Frankfurt: QM01)
From the President of the Company. The Company is
pleased to update its shareholders on the current operational
developments in New Mexico and
Arizona. DME has successfully
installed the necessary physical equipment for the helium
processing plant in New Mexico,
achieving its initial objective of becoming a fully vertically
integrated helium company. The required hardware and software
components for handling the gaseous mixture have been installed and
tested for operations. These components were essential to meet
end-user BTU requirements and upcoming industry changes in natural
gas processing, safety, and transportation. The dehydration, amine
and high-pressure compression units are operational and currently
processing gas. Numerous modifications were made to address the
compositional change from a nitrogen to a natural gas environment,
which includes both light and heavy fractional hydrocarbon
molecules. The replaced components have been retained for use
in the construction of a future plant to be used in a primary
nitrogen gas stream where natural gas values are less than 9.8%,
such as in Arizona.
The company is still performing cost-efficient maintenance on
initially selected wells to increase the overall throughput of the
plant. The geologic team has identified wells for short-term, and
long-term production boosts. For example, foaming 15 wells has led
to a notable increase in raw gas flows to the plant. This
maintenance has been carried out multiple times in recent months,
resulting in sustained gas flow increases and a significant
reduction in saltwater production.
The Company continues negotiations with a specific end-user for
the natural gas portion of the product stream at the end of the
current contract. DME continues to receive interest from end-users
for our processed helium due to the ongoing helium shortage.
Additionally, we are collaborating with a private company and
national laboratories for CO2 capture and processing. The Company's
goal is to cost-effectively produce food-grade CO2 for potential
commercial sale. There is a reported shortage of food-grade CO2,
providing an additional opportunity for increased revenues and
value for the Company.
The Company continues to work closely with state and federal
inspectors to bring the visible side of the field operations
current. This involves repairing and maintaining roads and the
perimeter surrounding the surface equipment. This crucial aspect of
field operations was highlighted during recent wildfires in
West Texas and South-Eastern New
Mexico. The Company has acquired tracked equipment and haul
capability to handle these issues internally and safeguard its
investment. So far, DME has repaired numerous miles of roads on its
BLM and State of New Mexico leases
and will proceed with planned work.
The DME team has completed its end-of-year and first-quarter
financial reports and diligently navigated the latest changes
between Canadian IFRS and US GAAP accounting procedures.
Despite the complexity of the task, the team recognized the
importance of addressing these issues to support the Company's
transition from exploration to a full-scale helium
producer. While the initial NI 51-101 report on the
West Pecos New Mexico asset was
limited due to time (only the first 90 days after
purchase) and data available, DME anticipates gaining a
clearer understanding of future opportunities once the plant is
fully operational. Canadian regulators developed the NI 51-101 to
provide specific insights into different categories of oil and gas
production and reserves. Although the presence of helium is well
documented in almost every well, helium production was never
tracked separately, nor were royalties or credit given to the well
owners/producers. Therefore, until the Company has documented
helium values properly accounted for, future reserves are purely
based on well-test data. After DME has the plant fully operational,
it should provide a better idea of what initial future production
exists for that field and where to seek out further opportunities
to maximize helium production.
The Company has renewed its leases in Arizona and is actively striving to establish
a cost-effective pathway to production in the state, mirroring
successful models in other states.
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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SOURCE Desert Mountain Energy Corp.
