DMEHF - Desert Mountain Energy Successfully Completes Drilling of Third Helium Test Well in AZ

(TheNewswire)

December 14, 2020 - TheNewswire - Vancouver, BritishColumbia - DESERT MOUNTAINENERGY CORP.  (the “Company”) (TSX V: DME ) ( OTC: DMEHF ) ( Frankfurt: QM01) From the President of theCompany.

The Company is pleased to announce that it successfullycompleted drilling of the previously approved and permitted third welllast Tuesday 12/08/20 and open hole logs run and production casing setand cemented into place.  Upon the removal of drilling equipment, thesingle pit was immediately filled, thereby completing the initialremediation on 12/09/20.  As previously press released the Companyhad drilled, set and cemented into place the surface casing to protecttreatable water on 12/04/20.  The production casing was run andcemented into place on 12/08/20 providing the additional protection toall zones as per the previously approved and permitted well design.

Drilling operations did not encounter any oil and onlyfound background low btu gas at levels normally associated with thedrilling of water wells in this area.  The Company againsignificantly reduced the amount of water required to drill, with theuse of high-pressure air / mist.  This is, to the best of theCompany’s information and belief, the same procedure used by theoffsetting surface owner to drill their water well last week.  TheCompany used more surface casing and cement to protect all possibletreatable water zones than did the offsetting surface owner.  Eventhough the Company did not encounter any flows or shows of significantwater during drilling through the perceived aquifer as might benormally expected, it still set and cemented protective surface casingin accordance with the approved permit.  The well logs also indicatedthe placement of the well correlated with Company plans to have thedrilling intercept the highest porosity zones, again precluding theneed for fracking.  The Company has previously stated its goal is toapply geology and geophysics to successfully select drilling locationsto remove the need for large fracks similar to what has been routinelydone to produce oil from tight formations.

The open hole well logs indicated the Companyencountered multiple prospective helium bearing zones.  Resistivitiesin the three prospective helium bearing zones range from 48 ohms to ahigh in excess of 120 ohms.  Excellent porosities demonstrated directcorrelation to the prospective helium bearing zones with the thickestprobable helium bearing zone being 59’ thick.

The successful drilling of the third well some 74 milesaway from the first two wells (the results of which were previouslyannounced in June and July 2020) clearly demonstrates the Company’sgeologic modeling plans in reference as to the basic required trapmechanisms for commercial helium production in NE Arizona.  PerPenwell Publishing data the average success rate on wildcatexploration wells for major companies has dropped from a high of 30.3%in 1997 with the average successful drilling rate for independents tobe off a high of 17.6% in the same time period.  Desert MountainEnergy Corp’s corporate strategy to repeatedly find possible heliumproducing areas is clearly proven.

AboutDesert Mountain Energy

Desert Mountain Energy Corp. is a publicly traded exploration andresource company focused on the discovery and development of rareearth gas fields in the US.  The Company is primarily looking forelements deemed critical to the green energy and high technologyindustries.

We seek safe harbor

“Robert Rohlfing”
Robert Rohlfing
Chairman & CEO

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Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in polices of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release. The statements made in this press release may containcertain forward-looking statements that involve a number of risks anduncertainties.  Actual events or results may differ from theCompany’s expectations .

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