Desert Mountain Energy Provides Operations Update
TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, May 31, 2023 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (U.S. OTC: DMEHF) (Frankfurt: QM01) From the President of the Company. The Company wishes to apprise shareholders that it has continued to complete planned work as previously outlined, per the use of proceeds from the last financing. "The Company is in an excellent financial position," said Robert Rohlfing, CEO of DME. "There is approximately $19.7 CDN million cash on hand with significant percentages tied up in various guaranteed interest-bearing accounts."
The wells feeding the McCauley Helium Processing Facility were swabbed down with no formation water being detected. The water removed showed signs that it was from drilling and completion operations and not from the targeted formations. A full-size, helium gas tube trailer is on-site for production rather than the smaller tanks for run-up testing.
As previously outlined in the use of proceeds, the Company has acquired additional heavy trucks and additional trailers. Trailers to haul the Company's produced raw crude gases are being modified to haul crude gas from our other wells to the McCauley Helium Processing Facility. The Company expects to take delivery of a workover rig, capable of swabbing and light workover functions, by the end of June 2023. These specific vehicles were selected to help optimize and reduce the wait time to accomplish specific tasks. Our trucking company continues to improve usage performance. The signing of a long-term agreement to haul heavy gas field compression units for a major company in the four corners region and Colorado is significant.
Our hydrogen drilling partner was encountering market conditions slowing their financing down. The Company had already planned for a possible contingency and will be drilling two wildcat wells, specifically targeting helium, starting towards the end of June 2023 to the middle of July 2023. One well will be drilled on the south Winslow Prospect and the other well will be on the O'Haco leases. Both wells are located within approximately ten miles of the McCauley Helium Processing Facility. Depending on the outcome of those drilling efforts, initial production will be trucked to the McCauley Helium Processing Facility. DME anticipates drilling the shallow hydrogen/helium wells towards the end of August 2023.
The Company has continued to go forth with multiple archeological studies required for drilling and production on our state leases. This extensive work and separate permitting are required, prior to requesting actual drilling permits, from the State of Arizona Oil & Gas Conservation Commission. We are also engaged in geophysical studies across NE Arizona and other states. Those activities are in conjunction with private oil & gas companies currently drilling. The Company is not engaged or in partnership with those companies in drilling wells for hydrocarbon production. The Company expends very small monies to have independent geologists with mass spectrometers on location during drilling operations. Thus far our efforts have found the presence of helium in areas previously untested for both helium and hydrogen. Looking at the entire spectrum of elements is an established practice by the Company and provides our geological team with the maximum data by which to make decisions.
The Company has identified and ordered the longest lead time components for two processing facilities. The next processing facility is planned to have liquefication capabilities in order to process the noble gases in addition to being able to sell liquified helium to meet specific customers needs.
Desert Mountain Energy Corp. is a publicly traded resource company primarily focused on exploration, development and production of helium, hydrogen and noble gases. The Company is primarily looking for 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.
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.
