DMEHF - Desert Mountain Energy Stays on Schedule in 2021 with Drilling Wells #4 and #5
(TheNewswire)
January 4, 2021 - TheNewswire - Vancouver, BritishColumbia - DESERT MOUNTAIN ENERGY CORP. (the “Company”)(TSXV:DME ) ( OTC:DMEHF ) ( Frankfurt:QM01) From the President of the Company.
Desert Mountain Energy Corp.’s(“DME” or the “Company”) efficacy of its proprietary systemfor geological research has moved from conceptual to reality withactual drilling results. The Company looks forward to proving up moreof their forward-thinking methodologies. DME is looking for higherpercentage He3 & He4 concentrations similar to what it has thusfar found and with similar bottom hole pressures to that found in ourfirst 3 wells.
The Company is pleased to announce thatin keeping with its first quarter 2021 plans, it selected welllocations for #4 & #5 and successfully completed the associatedcultural resources field work and plant survey. Well #4 will bedrilled on private land and leases with both planned wells to bedrilled to the Pre-Cambrian Granite at 3,900’+-, with drillingscheduled upon final permit & equipment availability. Both well #4and #5 will be located approximately 30 miles from wells #1 & #2.The Company’s geological staff believe that the anticlinal featureand required trapping mechanisms for helium are present. It isexpected well #4 will be proving up multiple deeper / higher pressuredprospective zones. The Company would anticipate the area surroundingthis well could accommodate placement of 8-12 wells, the majority ofwhich would be on the same friendly private surface and mineralownership. In keeping with the Company’s direction of being aresponsible member of the community, starting with limiting thesurface area of disturbance. Most of these locations are very closeto all weather roads and on sites with little or no vegetations withthe utilization of only NSF 60 additives, if required, for thedrilling of any well. For the past two decades principal management ofthe Company has utilized only these environmentally safe additives.
The Company has had an excellent2020 with the stock price up in excess of 600%in one year! This provided the Company the opportunity to raise $13million at a share price of $1.60 CDN per unit, thereby significantlyreducing the overall dilution to current shareholders. Throughexpedient controls, Company management has lowered its per footdrilling costs approximately 28% between the first and thirdwells.
DME is well financed for the upcomingdrilling while also finalizing and undertaking the development andconstruction of our processing and solar power facilities. Our goal isspecifically designed to discover, produce and sell varying grades ofproduct, (He3 & He4) to meet demands of the ever growing renewableand environmentally sectors. The few helium companies currently withany product are still looking to find someone to partner with.Alternatively, the Company may look to process a generic product, orto 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 processingpartnerships with large companies provide and serve our stated goalsto shareholders. Discussions continue with multiple possible end usersfor differing grades and applications of our product. The upcomingfusion market will require a significant increase in high grade heliumfor control and operational features. Again, the Company has and istargeting specific formations to meet these high quality and high ROIopportunities for our shareholders.
Our proprietary geologic methodology andmodeling was proven again on the third well. As previously stated inour 12/14/2020 pressrelease the overallaverage for wildcat exploratory wells for major corporations hasdecreased from a high of 30.3% in 1997 and 17.6% for independents to amuch lower figure now. DME is currently 3 for 3!
It has been the stated position of thecurrent Company leadership that the first five wells will delineatespecific geologic structures, that meet the minimum optimumrequirements to have possible commercial helium production, thereby providing thebasis from which to build meaningful long term commercial productionnot only in this area but others. The Pinta Dome Helium Field inArizona, operated cost effectively for some 13 years and at a timewhen the pricing was extremely low, compared to the current possiblepricing scenario. The Pinta Dome field started out producing at103#psi flowing pressure. Our first well flow tested at 900# psiflowing pressure, obviously considerably higher than what the firstoperators dealt with at Pinta Dome.
ABOUT DESERT MOUNTAINENERGY
Desert Mountain Energy Corp. is apublicly traded exploration and resource company focused on thediscovery and development of rare earth gas fields in the U.S. TheCompany is primarily looking for elements deemed critical to therenewable energy and high technology industries.
We seek safe harbor
“RobertRohlfing”
Robert Rohlfing
Chairman & CEO
For more information,contact:
Don Mosher, Vice President ofFinance
(604) 617-5448
E-mail Don@desertmountainenergy.com
Neither the TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in polices ofthe TSX Venture Exchange) accepts responsibility for the adequacy oraccuracy of this release. The statements made in this press releasemay contain certain forward-looking statements that involve a numberof risks and uncertainties. Actual events or results may differ fromthe Company’s expectations.
Cautionary Note Regarding Forward-Looking Statements
This news releasecontains “forward-looking statements” within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 and“forward-looking information” within the meaning of applicableCanadian securities legislation. Such forwardlooking statements andinformation herein include but are not limited to statements regardingthe Company’s anticipated performance in the future the plannedexploration activities, receipt of positive results from drilling, thecompletion of further drilling and exploration work, and the timingand results of various activities.
Forward-lookingstatements 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 itsoperations to be materially different from those expressed or impliedby such statements. Such factors include, among others, changes innational and local governments, legislation, taxation, controls,regulations and political or economic developments in Canada and theUnited States; financial risks due to helium prices, operating ortechnical difficulties in exploration and development activities;risks and hazards and the speculative nature of resource explorationand related development; risks in obtaining necessary licenses andpermits, and challenges to the Company’s title toproperties.
Forward-lookingstatements are based on assumptions management believes to bereasonable, including but not limited to the continued operation ofthe Company’s exploration operations, no material adverse change inthe market price of commodities, and such other assumptions andfactors as set out herein. Although the Company has attempted toidentify important factors that could cause actual results to differmaterially from those contained in forward-looking statements orinformation, there may be other factors that cause results to bematerially different from those anticipated, described, estimated,assessed or intended. There can be no assurance that anyforward-looking statements or information will prove to be accurate asactual results and future events could differ materially from thoseanticipated in such statements or information. Accordingly, readersshould not place undue reliance on forward-looking statements orinformation. The Company does not intend to, and does not assume anyobligation to update such forward-looking statements or information,other than as required by applicable law.
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