Desert Mountain Energy Corp. Stays on Schedule in 2021 with Drilling Wells #4 and #5
Desert Mountain Energy Corp.’s (“DME” or the “Company”) efficacy of its proprietary system for geological research has moved from conceptual to reality with actual drilling results. The Company looks forward to proving up more of their forward-thinking methodologies. DME is looking for higher percentage He3 & He4 concentrations similar to what it has thus far found and with similar bottom hole pressures to that found in our first 3 wells.
The Company is pleased to announce that in keeping with its first quarter 2021 plans, it selected well locations for #4 & #5 and successfully completed the associated cultural resources field work and plant survey. Well #4 will be drilled on private land and leases with both planned wells to be drilled to the Pre-Cambrian Granite at 3,900’+-, with drilling scheduled upon final permit & equipment availability. Both well #4 and #5 will be located approximately 30 miles from wells #1 & #2. The Company’s geological staff believe that the anticlinal feature and required trapping mechanisms for helium are present. It is expected well #4 will be proving up multiple deeper / higher pressured prospective zones. The Company would anticipate the area surrounding this well could accommodate placement of 8-12 wells, the majority of which would be on the same friendly private surface and mineral ownership. In keeping with the Company’s direction of being a responsible member of the community, starting with limiting the surface area of disturbance. Most of these locations are very close to all weather roads and on sites with little or no vegetations with the utilization of only NSF 60 additives, if required, for the drilling of any well. For the past two decades principal management of the Company has utilized only these environmentally safe additives.
The Company has had an excellent 2020 with the stock price up in excess of 600% in one year! This provided the Company the opportunity to raise $13 million at a share price of $1.60 CDN per unit, thereby significantly reducing the overall dilution to current shareholders. Through expedient controls, Company management has lowered its per foot drilling costs approximately 28% between the first and third wells.
DME is well financed for the upcoming drilling while also finalizing and undertaking the development and construction of our processing and solar power facilities. Our goal is specifically designed to discover, produce and sell varying grades of product, (He3 & He4) to meet demands of the ever growing renewable and environmentally sectors. The few helium companies currently with any product are still looking to find someone to partner with. Alternatively, the Company may look to process a generic product, or to sell a crude helium under whatever terms the market may dictate. Our goal is to generate the maximum value for our shareholders! Management does not feel possible long-term offtake processing partnerships with large companies provide and serve our stated goals to shareholders. Discussions continue with multiple possible end users for differing grades and applications of our product. The upcoming fusion market will require a significant increase in high grade helium for control and operational features. Again, the Company has and is targeting specific formations to meet these high quality and high ROI opportunities for our shareholders.
Our proprietary geologic methodology and modeling was proven again on the third well. As previously stated in our 12/14/2020 press release the overall average for wildcat exploratory wells for major corporations has decreased from a high of 30.3% in 1997 and 17.6% for independents to a much lower figure now. DME is currently 3 for 3!
It has been the stated position of the current Company leadership that the first five wells will delineate specific geologic structures, that meet the minimum optimum requirements to have possible commercial helium production, thereby providing the basis from which to build meaningful long term commercial production not only in this area but others. The Pinta Dome Helium Field in Arizona, operated cost effectively for some 13 years and at a time when the pricing was extremely low, compared to the current possible pricing scenario. The Pinta Dome field started out producing at 103#psi flowing pressure. Our first well flow tested at 900# psi flowing pressure, obviously considerably higher than what the first operators dealt with at Pinta Dome.
ABOUT DESERT MOUNTAIN ENERGY
Desert Mountain Energy Corp. is a publicly traded exploration and resource company focused on the discovery and development of rare earth gas fields in the U.S. The Company is primarily looking for elements deemed critical to the renewable energy and high technology industries.
We seek safe harbor
Chairman & CEO
For more information, contact:
Don Mosher, Vice President of Finance
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 forwardlooking 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 does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.