The Company is pleased to announce that it has chosen to open corporate offices for U.S. Operations in Surprise, Arizona and will shortly be announcing the location of the site for the processing facilities in Navajo County, Arizona.
The Company is pleased to announce that it has issued options to Directors, Officers, and consultants or employees.
Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) From the President of the Company.
The Company is pleased to announce that it has acquired an additional 9,885.2 acres in Navajo County, AZ. These properties were selected based on results from drilling and the Company exploration team feels strongly about these newest acquisitions and the additional 15 highly prospective well locations. Most junior exploration companies rarely have the opportunity to participate in the drilling, let alone control Tier 1 assets this early in their exploration model. Desert Mountain Energy Corp’s management and exploration team are extremely excited to be in the position to drill and develop this level of Tier 1 assets. The Company is planning on drilling the end of March into April a three well package and undertaking other final completion work on wells 1 & 2, dependent upon rig and associated crew availabilities.
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 Finance (604) 617-5448 E-mail: [email protected] |
|
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.
Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) From the President of the Company.
The Company is pleased to announce guidance on helium reserves on its first well completed in 2020. The reserve estimate table is provided to help provide guidance on possible reservoir scenarios based on four point flow testing and correlated by Dr. Ed Coalson. The report is available on the DME website or click here. Currently there is no other known helium production from the perforated zone in the State 10-1 well within 100 miles. In addition, per the AZOGCC rules, only one well may be drilled and completed for any type of gas (including helium), per square mile in this area. Actual future production may, at some unknown time, provide directive to a possible increase of well density from one to two wells per square mile. Any increase in well density would have to be approved in advance via a public hearing with the AZOGCC and the Company does not currently anticipate that any such request will be made in the near term. The attached reservoir estimates are based on only one well per square mile but with three different effective drainage scenarios.
Edward Coalson, Ph.D.
Senior Consultant & Qualified Reserves Evaluator
Edward Coalson received his B.S in Geology from Cal State University, M.S. in Geology from the University of Wyoming and Ph.D. in Geology from Colorado School of Mines. His experience in Petrophysics led to the discovery of many significant oil and gas fields in Colorado and Wyoming. Ed’s experience has been further amplified with teaching courses, including the Colorado School of Mines. Dr. Coalson is a qualified person.
Specific data relevant to the perforated zone and the associated input data assumptions on the linked chart by Dr. Coalson.
The linked report by Dr. Ed Coalson is based on what was seen during drilling, associated proprietary seismic, drill cuttings and open hole logs. The penetration of the perforated zone occurred while drilling with air only with 4 saver subs in the string. Therefore, ROP of the perforated zone was without inclusion of any outside fluids. No fluid was seen from approximately 150’ above to 114’ under the formation. Therefore, the assumed value of .2 for SW is to account for the air rates, (980 psi and 1100 cfm,) at time of formation penetration. Again, even though no fluids of any type where witnessed Dr. Coalson used an assumed .2 input value which would include any connate water valuations.
The cuttings from 15’ above and 20’ below the perforated interval showed very thin interbedded shale inclusions, (<2mm,) at non-patterned intervals within the sections of interest. Cuttings from the 15’ above the perforated zone displayed fine grained well sorted sand stone with gas bubbling from the larger chips. The perforated interval cuttings were medium grained well sorted sand stone again with larger currents bubbling gas. Cuttings between the perforated interval and the lower zone showed a dolomitic lime with a dark red shale section. The lower zone displayed a mixture of fine to medium grading downward to a fine grained sand with dolomitic inclusions in the bottom 5 feet changing to a red sandy / silty shale.
During drilling it was witnessed that the volume of the cuttings from 2,089’to 2,137’ markedly increased and was born out by the washout effectively seen on the open hole logs. It is assumed these washouts contributed to the inordinately high porosity numbers seen on the open hole logs. Cuttings from those sections would suggest porosities between 20 and 28 percent not the higher values displayed on the open hole logs. Therefore, the lower number was used in the calculations to account for possible differentiations in correlation between sample evaluation and open hole log interpretations. While in many fields GR log may be selectively used to estimate permeabilities, the 10-1 suite of logs included acoustic logs to provide clearer indicator data points for calculations with the least amount of statistical scatter.
The helium value of 7% was used across the chart for the purposes of drainage valuations. There were differences between the 10-1 and the 16-1 wells, however as seen on the log the same zone was present in both wells. This report is solely for the purpose to provide guidance on the 10-1 well. There are wells in the area of the 10-1 well reporting up to a high of 9% helium values with the Pinta Dome field showing values during the life of production between 6% and 11%. Additional possible recoverable helium values can be easily calculated by simply inclusion of the desired higher or lower he%.
Compression factors with helium, nitrogen and other assorted rare earth gases do not necessarily fit within guidelines most engineers are accustomed to finding. Most PE are accustomed to the factors for C1-C8 and higher including Hexanes, Diterpanes, Triterpanes, N2, CO2, etc… The 10-1 well tests contained none of the higher end steranes or aromatics and contained very minimal amounts of methane. However, the gaseous sampling showed rare earth gases contained in a primarily nitrogen reservoir and is less known or studied and their associated effects on actual production with elevated helium values is even less known. For the purposes of the linked chart it has been created using only the normal compression values for Nitrogen and helium. Therefore, it should be assumed that actual helium percentages will most likely change +- to some unknown degree over the life span of any given well within a field.
The closest production is from the Pinta Dome field which is an Aolian Sand which is heavily interbedded. As such helium production and gross he% varied greatly within wells relatively closely spaced as well as helium values and krypton values changing over the 13 year life of the field. The 10-1 well is perforated in a non-Aolian Sand. Therefore the assumption is made that the drainage area for any given well should be greater based on the more contiguous nature of the formation.
The Company geologic team has selected the next three well locations and with moderating weather, surveys for surface access and well site locations will be completed shortly. The Company anticipates final permitting and drilling to begin upon road weight restrictions being lifted and rig availability. All three wells will be drilled to an approximate depth of 4,000’+- and as previously announced will be drilled consecutively on private property.
The Company has completed negotiations for the opening of a corporate office in Surprise, Arizona in March.
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
|
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.
Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) From the President of the Company.
The Company is pleased to announce that it is continuing to review properties it had originally acquired for hydrogen production possibilities. The Company had originally acquired properties that it considered as highly prospective for both hydrogen and helium production and had chosen to focus on the more easily enhanced nitrogen/helium properties instead of the more involved hydrogen /helium processing facility requirements. Although the trapping mechanisms are very similar in nature, the more robust nitrogen/helium traps will continue to be the focus of DME. The Company feels extremely good about the known hydrogen occurrences on the lease properties it had originally included in its acquisitions, however, the current Company leadership had selectively chosen prospective areas for future hydrogen/helium production.
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 Finance
(604) 617-5448
E-mail: [email protected]
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.
Thank you for attending the shareholder meeting, The Company is looking forward to the next year. If you have any questions, please send them to:
Don Mosher, Vice President of Finance
[email protected]
(604) 617-5448
Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) From the President of the Company.
The Company is pleased to announce that it has set 4:00 pm EST on 01/21/21 as the time for a conference call with senior management. Callers are welcome to join the Zoom meeting using this link: https://us02web.zoom.us/j/83276358077 The Company is also asking callers to mute their devices unless speaking. It is expected that the CEO will speak for 10-12 mins followed by limited questions. In an effort to cover as many questions as possible, the moderator will permit 15 seconds for a question to be asked, anyone going longer will be cut off and we will move to the next attendee.
The Company held its annual general meeting last Friday with all matters of record being approved by the quorum of voting shareholders. The Company is moving ahead with the purchase of a forty-acre parcel on which to build its processing facilities in Navajo County, Arizona and expects to close shortly.
The Company is also pleased to announce that it has completed filing with the State of Arizona Procurement Office as a qualified well plugging, emergency plugging and plugging engineering company provider to the Arizona Oil and Gas Conservation Commission and AZDEQ. Principals of the Company have been listed as the approved and licensed emergency well responder and well plugging provider in other states and jurisdictions and is pleased to help provide this specialized service to the State of Arizona.
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 renewable & green energy sectors and high technology industries.
We seek safe harbor
“Robert Rohlfing”
Robert Rohlfing
Chairman & CEO
For more information, contact:
|
Don Mosher, Vice President of Finance (604) 617-5448 E-mail: [email protected] |
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.
Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) From the President of the Company.
The Company is pleased to announce that has exercised some of its options on properties and has acquired an additional 8,510 acres in Navajo County, Arizona. All of the newest properties are on private lands. Dr. Ed Coalson and Dr. Jim Cronoble are extremely excited with the number of probable locations across a helium trend where previous wells had helium showings in different horizons within the same wellbore. Furthermore, our geologic staff is confident this fourth area has all of the proprietary requirements the Company has previously established where fracking is not required for helium production. The Company will be looking to drill in this area early in the second quarter of 2021 with a multi well package.
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 renewable & green energy sectors and high technology industries.
We seek safe harbor
“Robert Rohlfing”
Robert Rohlfing
Chairman & CEO
For more information, contact:
|
Don Mosher, Vice President of Finance (604) 617-5448 E-mail: [email protected] |
|
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.
Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) From the President of the Company.
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
“Robert Rohlfing”
Robert Rohlfing
Chairman & CEO
For more information, contact:
Don Mosher, Vice President of Finance
(604) 617-5448
E-mail [email protected]
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.
Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) From the President of the Company.
The Company is pleased to announce that it successfully completed drilling of the previously approved and permitted third well last Tuesday 12/08/20 and open hole logs run and production casing set and cemented into place. Upon the removal of drilling equipment, the single pit was immediately filled, thereby completing the initial remediation on 12/09/20. As previously press released the Company had drilled, set and cemented into place the surface casing to protect treatable water on 12/04/20. The production casing was run and cemented into place on 12/08/20 providing the additional protection to all zones as per the previously approved and permitted well design.
Drilling operations did not encounter any oil and only found background low btu gas at levels normally associated with the drilling of water wells in this area. The Company again significantly reduced the amount of water required to drill, with the use of high-pressure air / mist. This is, to the best of the Company’s information and belief, the same procedure used by the offsetting surface owner to drill their water well last week. The Company used more surface casing and cement to protect all possible treatable water zones than did the offsetting surface owner. Even though the Company did not encounter any flows or shows of significant water during drilling through the perceived aquifer as might be normally expected, it still set and cemented protective surface casing in accordance with the approved permit. The well logs also indicated the placement of the well correlated with Company plans to have the drilling intercept the highest porosity zones, again precluding the need for fracking. The Company has previously stated its goal is to apply geology and geophysics to successfully select drilling locations to remove the need for large fracks similar to what has been routinely done to produce oil from tight formations.
The open hole well logs indicated the Company encountered multiple prospective helium bearing zones. Resistivities in the three prospective helium bearing zones range from 48 ohms to a high in excess of 120 ohms. Excellent porosities demonstrated direct correlation to the prospective helium bearing zones with the thickest probable helium bearing zone being 59’ thick.
The successful drilling of the third well some 74 miles away from the first two wells (the results of which were previously announced in June and July 2020) clearly demonstrates the Company’s geologic modeling plans in reference as to the basic required trap mechanisms for commercial helium production in NE Arizona. Per Penwell Publishing data the average success rate on wildcat exploration wells for major companies has dropped from a high of 30.3% in 1997 with the average successful drilling rate for independents to be off a high of 17.6% in the same time period. Desert Mountain Energy Corp’s corporate strategy to repeatedly find possible helium producing areas is clearly proven.
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 Finance (604) 617-5448 E-mail: [email protected] |
|
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.