TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, June 26,
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 announce the commencement of operations at its helium
processing plant on the West Pecos Field in New Mexico. The plant is currently separating
helium from the natural gas stream and transferring it to an
offtake trailer. The startup procedure will involve optimization
and potential programming improvements, with an estimated duration
of 60-90 days.
The Company is producing from specific wells and will add flow
rates to the plant during the next 120-180 days. The gaseous
mixture of the individual wells varies from well to well. This
includes Helium, N-Pentane, N-Butanes, Hexanes, and condensate
oils, besides the normal methane and associated mixtures. The plant
had additional equipment added to account for these variations and
the Company wants to ensure that the sensing equipment operates in
the prescribed manner with varied flow rates and mixtures.
Additional equipment and storage/recycle capabilities were added to
remove the possibility of needless atmospheric release of any
helium. The plant system permits DME to capture, recycle and enrich
the overall final grade of helium from the plant to maximize return
on investment and be good stewards of these resources. The plant
was initiated at approximately 960MCFGPD and will gradually
increase to the maximum capacity within the current plant
redesigns. The initial truckloads will contain a mix of various
helium grades, and DME will receive payment accordingly. DME
continues to aim to achieve a final product of 99.9995% pure helium
following the completion of the initiation process, with the
intention of selling to targeted markets to optimize pricing.
The West Pecos Field acquisition closed on July 1, 2023. The purchase included a natural gas
offtake contract (which expired May 31,
2024), covering 188 producing gas wells and gas collection
system. Over the last 12 months, DME repaired roads, bush hogged
around well heads and accompanied surface equipment, did minor work
on 15 wells, replaced lines identified as probable to fail within 5
years and pigged the collection system. The Company is currently
implementing in-line compression equipment that was purchased
earlier to reduce line pressure and boost production from wells
with higher helium content at choke points in the gathering system.
Initially designed to extract helium from a nitrogen field using
solar energy, the plant required significant modifications to
switch the power source to natural gas from our field.
The commencement of plant operations enables the Company to
pivot towards increasing production levels. Geological assessments
have pinpointed zones with higher-grade helium in wells, with an
emphasis on reducing any formation water produced, which will be
integrated into the existing inventory. A team has been assembled
to operate the Company's workover rig, targeting wells with
elevated helium levels to enhance production from current
sources.
The Company continues its efforts with Beam Earth Ltd. and other
related companies for the production of both hydrogen and helium
from its Arizona locations.
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.