Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME) reports that the recently concluded FY 2019 Crude Helium Auction by the U.S. Bureau of Land Management (“BLM”) reflected surging prices in the world Helium market. The auction took place in Amarillo, TX, site of the National Helium Reserve, on August 31, 2018. It was the fifth such auction by the BLM since passage of the Helium Stewardship Act of 2013. The average price per Mscf (thousand square cubic feet) of crude helium jumped to $279.95 from $119.31 in last year’s FY 2018 auction, reflecting an approximate 135% increase year-to-year. 210 MMscf (million square cubic feet) of crude helium was sold in a total of 12 lots. Prices for Grade A processed helium to distributors and end-users are expected to be even higher due to the processing costs involved. It is not clear to what extent wholesale and retail prices going forward will maintain or exceed these levels.
The FY 2019 crude helium auction is the last auction anticipated to be carried out by the BLM. Helium reserves in the National Helium Reserve are expected to decline to the minimum level of 3 Bscf (billion square cubic feet) mandated by legislation, which will effectively put an end to the sales.
According to Irwin Olian, CEO of the Company, “The Helium shortage which exists today is well-publicized throughout the industry and we have been expecting increases in Helium prices. The magnitude of this current jump is surprising, however, as it significantly exceeds increases that were anticipated. It appears to be a reflection of the fact prices at prior auctions may have been somewhat suppressed artificially and that the discontinuance of BLM auctions is sending fears throughout the market of further sharp increases. We are moving forward with our development plans in Arizona’s Holbrook Basin as expeditiously as possible.”
About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.
On Behalf of the Board of Directors of Desert Mountain Energy Corp.
Chairman & CEO
For more information, contact:
President and CEO
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443
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.