TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, Jan. 29,
2025 /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 share an update on its operations in
New Mexico and Arizona, as well as a review of the audited
financials for 2024.
New Mexico Operations
The helium processing facilities at the West Pecos Abo Gas Field
in New Mexico were brought online
over a span of several months. As stated in a press release dated
October 30, 2024, we faced various
software issues that were present from the initial assembly, as
well as instances of incorrect, substandard, and missing
components. All of the issues have since been rectified, and the
plant is now successfully separating helium from the natural gas
stream. It is anticipated that the first truckload of helium will
depart from the project site shortly. Based on current gas
production volumes, the Company looks toward filling a truckload
every 18-21 days depending upon customer specifications. This will
change as gas volumes and helium percentages increase.
DME is currently selling natural gas on a monthly basis, without
any sales being made into the Waha hub. The Company is actively
engaged in negotiations to secure a more favorable long-term
natural gas agreement.
Recently, the DME gas field in the Rozwell area has been
identified as having significant potential for hosting data
centers. The Company has been conducting a pilot project on its
West Pecos Gas Field to assess the feasibility of operating small
modular cryptocurrency mining equipment and small data
centers. Additionally, a local gas producer has partnered with a
major data operator to construct a 250 MW net-zero energy data
center. DME is actively investigating the streamlining of the
collection system to facilitate the increase in the percentage of
helium and the transportation of processed gas to a mainline for
use by a data center.
Continuing to own its workover rig allows DME to efficiently and
economically carry out targeted maintenance on its wells, avoiding
additional expenses such as mobilization, rig up, rig down, and
standby costs. This enables DME to selectively assess and test
different perforations, identifying and isolating those
perforations with the most productive gas-bearing zones.
Additionally, DME has conducted maintenance on various sections
of older pipelines as a proactive measure to prevent leaks and
spills. As of now, there are no wells in the field that require
artificial lift for extracting saltwater to boost gas production,
resulting in substantial cost savings for the company.
The Company has developed and finalized plans for near, interim,
and long-term strategies to achieve the goal of maximizing natural
gas and helium production from the existing wells in the field
within the next 24-36 months. Over 60% of our leases in
New Mexico are situated on Federal
BLM properties, and the transition in the administration in
Washington, DC is expected to
bring further favorable impacts to our operations in both
New Mexico and Arizona.
Arizona Operations
The Company is in ongoing talks with regulatory agencies and
lawmakers to establish definitive guidelines that will foster
helium production in Arizona. DME
appreciates the input received from the Federal Arizona delegation,
state legislators, the Arizona
Chamber of Commerce, and particularly the Tech Council members.
DME continues to collaborate with Beam Earth Ltd. and Hethos
Ltd. to advance its hydrogen opportunities alongside its helium
projects in Arizona and
New Mexico. The company is
engaging in conversations with Beam Ltd. and Hethos Ltd. regarding
the possibility of utilizing hydrogen cells to fuel a joint helium
and hydrogen processing facility in Arizona. Additionally, talks involve the
potential use of DME's plant design in various regions. The focus
of these discussions is centered on energy efficiency, as DME's
plant design is believed to operate with an 18% reduction in
electricity consumption.
In relation to the current legal action with the City of
Flagstaff, the Company continues its claim and multiple defences.
On January 8, 2025, the trial court
dismissed three more claims against the Company, reducing the total
to six out of the original 11 claims.
2024 Audited Financials
The Company changed auditors last year, and the new team
finalized the fully audited financials, submitting them before the
deadline. DME achieved a 66% decrease in net loss, from 0.14 to
0.05 cents per share. Management is
optimistic about achieving profitability in 2025.
To view the 2024 audited financial reports, visit Sedar+
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.
