VANCOUVER, BC, Jan. 29, 2025 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (U.S. OTC: DMEHF) (Frankfurt: QM01) From the President of the Company. Desert Mountain Energy Corp. (DME) is pleased to share an update on its operations in New Mexico and Arizona, as well as a review of the audited financials for 2024.
Desert Mountain Energy Corp. Logo (CNW Group/Desert Mountain Energy Corp.)
New Mexico Operations
The helium processing facilities at the West Pecos Abo Gas Field in New Mexico were brought online over a span of several months. As stated in a press release dated October 30, 2024, we faced various software issues that were present from the initial assembly, as well as instances of incorrect, substandard, and missing components. All of the issues have since been rectified, and the plant is now successfully separating helium from the natural gas stream. It is anticipated that the first truckload of helium will depart from the project site shortly. Based on current gas production volumes, the Company looks toward filling a truckload every 18-21 days depending upon customer specifications. This will change as gas volumes and helium percentages increase.
DME is currently selling natural gas on a monthly basis, without any sales being made into the Waha hub. The Company is actively engaged in negotiations to secure a more favorable long-term natural gas agreement.
Recently, the DME gas field in the Rozwell area has been identified as having significant potential for hosting data centers. The Company has been conducting a pilot project on its West Pecos Gas Field to assess the feasibility of operating small modular cryptocurrency mining equipment and small data centers. Additionally, a local gas producer has partnered with a major data operator to construct a 250 MW net-zero energy data center. DME is actively investigating the streamlining of the collection system to facilitate the increase in the percentage of helium and the transportation of processed gas to a mainline for use by a data center.
Continuing to own its workover rig allows DME to efficiently and economically carry out targeted maintenance on its wells, avoiding additional expenses such as mobilization, rig up, rig down, and standby costs. This enables DME to selectively assess and test different perforations, identifying and isolating those perforations with the most productive gas-bearing zones.
Additionally, DME has conducted maintenance on various sections of older pipelines as a proactive measure to prevent leaks and spills. As of now, there are no wells in the field that require artificial lift for extracting saltwater to boost gas production, resulting in substantial cost savings for the company.
The Company has developed and finalized plans for near, interim, and long-term strategies to achieve the goal of maximizing natural gas and helium production from the existing wells in the field within the next 24-36 months. Over 60% of our leases in New Mexico are situated on Federal BLM properties, and the transition in the administration in Washington, DC is expected to bring further favorable impacts to our operations in both New Mexico and Arizona.
Arizona Operations
The Company is in ongoing talks with regulatory agencies and lawmakers to establish definitive guidelines that will foster helium production in Arizona. DME appreciates the input received from the Federal Arizona delegation, state legislators, the Arizona Chamber of Commerce, and particularly the Tech Council members.
DME continues to collaborate with Beam Earth Ltd. and Hethos Ltd. to advance its hydrogen opportunities alongside its helium projects in Arizona and New Mexico. The company is engaging in conversations with Beam Ltd. and Hethos Ltd. regarding the possibility of utilizing hydrogen cells to fuel a joint helium and hydrogen processing facility in Arizona. Additionally, talks involve the potential use of DME's plant design in various regions. The focus of these discussions is centered on energy efficiency, as DME's plant design is believed to operate with an 18% reduction in electricity consumption.
In relation to the current legal action with the City of Flagstaff, the Company continues its claim and multiple defences. On January 8, 2025, the trial court dismissed three more claims against the Company, reducing the total to six out of the original 11 claims.
2024 Audited Financials
The Company changed auditors last year, and the new team finalized the fully audited financials, submitting them before the deadline. DME achieved a 66% decrease in net loss, from 0.14 to 0.05 cents per share. Management is optimistic about achieving profitability in 2025.
To view the 2024 audited financial reports, visit Sedar+
ABOUT DESERT MOUNTAIN ENERGY
Desert Mountain Energy Corp. is a publicly traded resource company primarily focused on the exploration, development and production of helium, hydrogen and natural gas. The Company is focused on helium extraction from different raw gas sources in an environmental and economical manner, supplying elements deemed critical to the renewable energy and high technology industries.
We seek safe harbor
"Robert Rohlfing" Robert Rohlfing Exec Chairman & CEO
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 forward looking 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 nor does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.
