VANCOUVER, BC, Dec. 13, 2022 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (DMEHF) (the "Company") (TSXV: DME) (U.S. OTC: DMEHF) From the President of the Company. The Company is pleased to announce that it has successfully completed its wildcat well on the Gunnar Dome prospect. As previously announced, the Company made the decision to test multiple zones in the well to have a better understanding of the localized geology with regard to future drill locations. A total of seven zones were perforated, tested, then squeezed off and bridge plugs were set to ensure complete closure. Many of the zones had gaseous mixtures which the McCauley processing plant is not currently set up to extract. The two sections which were perforated for production are within the same geologic formation and are separated by an impermeable layer with similar pressure. Both zones were perforated in a manner to stay within an area of only connate formation water values. Water-free or near-water-free Helium production is a continuing Company goal.
The upper zone contained 96.5422% Nitrogen, 0.0063% CO2, and 2.8232% Helium with the balance being constituted by fractional percentages of Methane, Ethane, Propane and Hexanes++. The lower perforated zone contained 98.5523% Nitrogen, 0.0075% CO2, and 0.7183% Helium with the balance containing the same types of the aforementioned fractional molecules. Most of the seven zones tested contained a similar range of high Nitrogen and varied Helium percentages, providing additional support to the Company's ability to find Helium in a primary Nitrogen environment, staying away from areas with elevated levels of CO2. The Company plans on initial Gunnar Dome production being metered and then transported approximately 24 miles to the McCauley Helium Processing Facility. Throughput numbers will not be announced until production has been established.
"Gas composition is extremely important when coupled with water-free or near-water-free production and it can be just as important as the Helium grade in the raw gas," said Robert Rohlfing, CEO of Desert Mountain Energy Corp. (DMEHF) "We are pleased that this well's specific gas composition, when combined with the wells in the McCauley field, provides for a relatively quick path to production. This well contains high levels of Nitrogen combined with Helium, minimally fractional CO2 and other noble gases. This makes the first plant much easier to operate."
