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 released the completion rig on both the State 10-1 and State 16-1 wells in Navajo County, Arizona. Flow tests have been conducted after perforating on both wells from zones where significant gas flows where found during drilling operations. The Company feels the pressure and volumes on both wells during testing fall well within the normal accepted oil and gas industry practices for determination of commercial flow rate protocols, with maximum non producibility volume speculations not taken into consideration.
Produced dry gas samples have been collected and sent to an independent lab for a total gaseous analysis. It is expected that results from these tests will take 7-10 days. The Company will address possible gas flow volumes, actual gross helium, other commercially viable rare earth gases and most likely production scenarios after testing results are received and reviewed by the team. It should also be noted the Company has fully restored and prepared both drilling locations for hydro seeding with native plant and grass species, when weather conditions are considered most favorable.
Significant probable pay zones were found in both wells. Each well had only 5’ perforated of the formation with the highest resistivity, porosity and neutron gas cross over on open hole wells logs combined with where the most significant gas flows had been encountered during the June and July drilling program. The Company utilized the newest design in booster charge perforation technologies on both wells to maximize initial production. These perforating charges were specifically selected to meet strict company geologic and drilling guidelines to eliminate the need for hydraulic fracturing and formation stimulation. This was accomplished via a single zone completion in both wells, proving up new field production from previously non-producing formations in Arizona. The Company considers it has other highly prospective pay zones within each well. Again, every formation the Company found containing gas in both wildcat wells would previously have been considered purely as speculative and will continue as such until the Company elects to drill, complete and test. Thereby establishing them first as additional prospective then productive formations.
Robert Rohlfing, CEO of the Company, crafted geologic studies within NE Arizona in October 1999 to search for what was felt to be a number of critical parameters required in relation to finding and then being able to cost effectively produce helium in Arizona. Careful application of the information it found via on the ground geologic studies, seismic and additional geophysical studies combined with many years of experience to delineate specific targets which would have the highest opportunity to drill and complete wells without the need to use large artificial formation stimulation, like is routinely done in many other geographical areas. The Company feels these additional proprietary minimum guidelines are key components in understanding overall the granularity of the entire spectrum of helium origination through production. The Company, continues with its own internal desire not to seek helium production from any zones where well completion would come from the same zone within a formation where potable water is withdrawn for human consumption.
DESERT MOUNTAIN ENERGY CORP AND THEIR COMMITMENTS TO ARIZONA
Desert Mountain Energy Corp. Continues to fulfill its promise of being an environmentally responsible partner in the State of Arizona. The Company is committed to protecting flowing treatable groundwater and have already and will continue to allocate funds for future projects that include isolating off these zones via cementing before drilling through, setting surface casing and cementing it into place.
The Company firmly believes that children are the future of Arizona and that their education is a top priority and are committed to being a responsible partner of the community in helping to provide a new revenue source to assist in funding education through the royalties it will be paying on the helium produced from its leases with the Arizona State Land Department.
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:
Don Mosher, Vice President of Capital Markets
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.