VANCOUVER, BC, April 30, 2025 /CNW/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (U.S. OTC: DMEHF) (Frankfurt: QM01) from the President of the Company. DME has entered into a non-disclosure agreement and memorandum of understanding with Sustany Holdings, effective April 27, 2025. Under the agreement, a large data center (in excess of 200 MW) will be constructed and powered by a combination of grid electricity, solar energy, and electricity generated from natural gas utilizing high-efficiency gas turbines. This agreement secures a long-term end user for DME's produced natural gas for the life of the field and a significant portion of its future helium output.
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To increase the production of tariff-regulated gas and high-grade helium, DME may add a nitrogen separation unit to meet gas purity specifications of the data center. The company will also update and reroute flow lines to maximize throughput at its processing facility. Although the facility has been optimized for peak helium extraction, it has been operating below volume capabilities; maximum helium production will require all wells to be routed through the plant.
DME plans to upgrade and expand approximately 33 miles of new lines, including the installation of larger lines to reduce pressure and increase natural gas and helium production. During these upgrades, wells and the processing facility will be temporarily shut in for specific periods.
DME's gathering system is not subject to the methane leakage issues found in some older systems in the area. After gas leaves DME's meter, the company is not responsible for subsequent leakages or line losses due to other processing systems. DME remains committed to cost-effective and environmentally conscious gas processing. The Bureau of Land Management has approved the temporary suspension of production during these enhancements. DME anticipates increased royalties and sales tax revenues from reduced lost volumes.
Some neighboring well owners have announced plans to interrupt production to install new gathering lines and pursue direct sales to end-users. DME and other operators have worked diligently to secure realistic gas sales contracts, however, terms offered by other buyers would not be economically viable for long-term operations or shareholder returns.
Discussions with Sustany Holdings also include potential expansion of the McCauley Helium Field solar facilities and integration with the Southwest Power Grid in Arizona. DME continues to reduce operational losses while advancing projects in Arizona and New Mexico.
In preparation for feasibility and geophysical studies in the UK, DME CEO Robert Rohlfing will meet with government officials and strategic partners over the next two weeks.
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 economic 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.
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.
