A REPORT FROM THE CEO: ROBERT ROHLFING

 

A REPORT FROM THE CEO: ROBERT ROHLFING

Monday, October 26, 2020

 

3RD QUARTER REVIEW

The third quarter has been very significant for the Company:

  • Received drill permits for wells State 10-1 and State 16-1.
  • Successfully completed both wells, significant pay zones were discovered in both holes.
  • Sampling proved significant concentrations of helium in both wells with excellent well pressure, low CO2 concentrations.
  • Purifying the helium will not involve any costly or problematic issues due to the mix of gases in our wells.
  • Completed a $13 million financing priced at $1.60.
  • Added 3 new board members to the team.
  • Began design work on a solar-powered processing facility

 

VERTICAL INTEGRATION

The Company is planning on becoming a vertically integrated helium producer selling directly to end users. Offtake discussions that have taken place over the last 2 years with helium processors made it evident that over 40% of our revenues would go to support their “processing system”. Prices for finished product have varying price points that range from $490 per mcf for shield gas to $3,200 per mcf for extreme high purity gas. We believe that the shareholders should benefit from the greater revenue achieved by finishing our own helium.

 

PRODUCTION

The Company plans to be in production starting the 4th quarter of 2021. To achieve this goal, we will undertake the general following items:

  • Finish permitting for a third well in the western part of the Holbrook basin to prove-up additional low CO2, high nitrogen content raw gas.
  • Drill third well in early November, secure gas analysis and flow rates
  • Contract with Gas Engineering firm to begin design of both well site Nitrogen stripping and final processing facilities.
  • Contract with power engineering firm to finalize solar generation site requirements. Goal is to become as close to carbon neutral as possible
  • Finalize & sign contracts with surface owners, for both power generation site and processing facilities.
  • Begin archeological studies and reviews for both well sites 4-6 and seismic acquisition
  • Exercise options for up to additional 42,000 acres of leases or some portion thereof.
  • After further gas analysis and flow testing, provide possible end users with options for purchase agreements and execute them when most advantageous for DME.
  • Secure Tractor trailer rigs as required by agreements.
  • Train plant personnel and secure additional contract drivers for trucking aspects

 

DME’S 4-YEAR PLAN:

We plan to start producing from 4 to 6 wells the fourth quarter of 2021. Our success in raising $13 million gives us the money to rapidly move forward with the first phase of our plans. Full development of our land package is expected to take approximately 4 years.

The 4-year plan to full production:

  • Total number of wells projected to be 50-55
  • Total projected capital expenditures including all drilling and infrastructure over 6 years is $45,000,000
  • Upgrade helium to end users will result in a shorter payback period.
  • Signing contracts with end users will stabilize future price swings in the helium market and give us a competitive edge.

We realize this is a very ambitious plan, however, with the success of the first 2 wells proving our geological model, it can be achieved. There is a lot of work and planning to be done along with expanding our team.

 

ABOUT DESERT MOUNTAIN ENERGY CORP:

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 US. The company is primarily looking for elements deemed critical to the green energy and high technology industries. We are an equal opportunity employer.

We seek safe harbor

Robert Rohlfing, CEO

 

For more information, contact:
Don Mosher, Vice President of Finance 604-617-5448

E-mail: don@desertmountainenergy.com

The TSX Venture Exchange & IIROC has not reviewed and does not accept responsibility for the adequacy or accuracy of the information contained herein. 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.

Where Helium Is Heading & Turning Desert Mountain Energy Into An Energy Company

In this interview, Andrew O’Donnell is joined by Robert Rohlfing the CEO & Chairman of Desert Mountain Energy. The key topics they discuss are:

• Helium sector
• Outsourcing excess energy
• Closes $9,125,000 Private Placement

Desert Mountain Energy (DME.V) wanted some money, the markets went all ‘No, take more! Take it all!’

“Not so long ago, one of our sales guys called Desert Mountain Energy (DME.V) and said, ‘yo desert bros, we like helium, you got helium, let’s work together.’

DME politely face-palmed. ‘We don’t really have a lot of money,’ they said. ‘We’re transitioning.’

Then their stock ran from $0.70 to $1.70.

Now they’ve got dollars…. READ MORE

DESERT MOUNTAIN ENERGY CLOSES $4,000,000 PRIVATE PLACEMENT

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01)  has closed its non-brokered private placement previously announced on Sept. 14, 2020, raising gross proceeds of $4,000,000. Under the Offering the Company issued 2,500,000 units (the ” Units “) at a price of CAD $1.60 per Unit. Each Unit is made up of one common share of the Company and one share purchase warrant (each, a ” Warrant “), with each whole Warrant allowing the subscriber to purchase one additional common share for a period of two years at a price of CAD $2.00. The expiry of the warrants may be accelerated at the sole discretion of the Company by written notice or news release if the closing price for the Common Share on the TSX Venture Exchange shall be equal to or greater than CAD $3.50 for a minimum of ten (10) consecutive trading days. Accordingly, the Company issued at total of 2,500,000 Common Shares in the Offering as well as 2,500,000 whole warrants.

The Company plans to use the proceeds for exploration, and development of the Company’s helium processing facilities, required power generation facilities, working capital and general corporate expenses.

In connection with the Offering, the Company paid an aggregate finders fees of (seven) 7% percent of the total gross proceeds of the Offering in cash and/or equivalent in Units along with 7% in finder warrants at the Offering price. All securities issued in connection with the Offering will be subject to a customary 4-month hold pursuant to applicable Canadian Securities Laws.

According to Robert Rohlfing, CEO of the Company, “we greatly appreciate the overwhelming support we have garnered from the investment community around the world. Particularly considering the extremely challenging market environment.”

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 US.  The Company is primarily looking for elements deemed critical to the green energy and high technology industries.

We seek safe harbor

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. 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.

Desert Mountain Energy Signs Engineering Contract for Helium Enhancment Facilities

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to announce that it has signed a contract for the engineering gas feed study with SIGIT, with offices located in Denver, CO. to design the solar power operated processing facilities for the helium operations in NE Arizona. The company currently plans on starting helium production in the fourth quarter of 2021.

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 US.  The Company is primarily looking for elements deemed critical to the green energy and high technology industries.

We seek safe harbor

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. 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.

Two commodities that could lie at the heart of the next resources bubble

 

“Commodities tend to move in cycles. And if you can identify early on which ones are about to surge in demand, you can profit handsomely. Dominic Frisby looks at which commodities he thinks look ripe for a bubble.”

READ MORE

Desert Mountain Energy Closes $9,125,000 Private Placement

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to announce that it has closed it’s non-brokered private placement previously announced on 09/11/20 (the “Offering”), raising gross proceeds of CAD $9,124,899. Under the Offering the Company issued 5,703,062 units (the Units”) at a price of CAD $1.60 per Unit. Each Unit is comprised on one common share and one share purchase warrant (each, a “Warrant”), with each whole Warrant allowing the subscriber to purchase one additional Common Share for a period of two years at a price of CAD $2.00. The expiry of the Warrants may be accelerated at the sole discretion of the Company by written notice if the closing price for the Common Share on the TSX Venture Exchange shall be equal to or greater than CAD $3.50 for a minimum of ten (10) consecutive trading days. Accordingly, the Company issued at total of 5,703,062 Common Shares in the Offering as well as 5,703,062 whole Warrants.

The Company plans to use the proceeds for exploration, and development of the Company’s helium processing facilities, required power generation facilities, working capital and general corporate expenses.

In connection with the Offering, the Company paid an aggregate finders fees of (five) 5% percent in cash and or equivalent in units, along with 3% in finder warrants, exercisable at a price of $2.00 per share for a period of two years from closing, on a portion of the Offering. All securities issued in connection with the Offering will be subject to a customary 4-month hold pursuant to applicable Canadian Securities Laws.

This private placement contains related party transactions. These transactions are exempt from the valuation and shareholder exemption requirements of Multilateral Instrument 61-101 pursuant to, in addition to other sections, ss.5.5(a) and 5.7(1)(a) respectively of that instrument. A material change report was not filed prior to Closing of this placement due to the uncertainty of knowing, in advance, in addition to other potential changes, when and if the placement would close, if final TSXV approval would be obtained or if the material details related to the placement and related parties taking part would change.

According to Robert Rohlfing, CEO of the Company, “we greatly appreciate the overwhelming support we have garnered from the investment community around the world, particularly considering the extremely challenging market environment.”

Any securities referred to herein will not nor have been offered nor registered under the U.S. Securities act of 1933 (The “1933 ACT”) and may not be offered or sold in the United States or to a person in the absence of such registration or an exemption from the registration requirements of the 1933 ACT.

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 US.  The Company is primarily looking for elements deemed critical to the green energy and high technology industries.

We seek safe harbor

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. 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.