DESERT MOUNTAIN ENERGY COMMENCES COMPLETION AND TESTING OF ITS FIRST TWO HELIUM WELLS IN ARIZONA AND APPLIES FOR 14,440 ACRES OF NEW LEASES IN THE HOLBROOK BASIN
Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to announce that completion and testing operations have now commenced at its initial two wildcat helium wells in Arizona’s Holbrook Basin, DME Well No. State 10-1 and DME Well No. State 16-1. Both wells were successfully drilled in June and July with production casing set. As reported in our Press Releases dated June 23, 2020 and July 20, 2020, both wells encountered significant gas flows from multiple zones aggregating over 180 ft. in each well, with helium and other gaseous content yet to be determined.
A workover/completion rig is presently on site and completion and evaluation procedures have now been commenced. The completion and evaluation procedures include logging of the cased holes, perforating the casing at select locations corresponding with anticipated pay zones, testing the pressure and flow rate of gas from the perforations, and gas sampling to evaluate full gaseous content. Industry best quality control and safety measures will be adhered to, with gas samples sent to an independent third party analytical laboratory. The Company anticipates that the completion and testing work will be complete with results available in the next few weeks. The Company does not plan to comment further on the work being done until the completion and testing is complete, at which time this will be announced.
The Company wishes further to announce that it has now made application to the Arizona State Department of Land to acquire an additional 14,440 acres of new helium leases in various parts of the Holbrook Basin. This application was made based on a detailed analysis by the Company’s technical team and is part of the Company’s ongoing program to create added-value for our shareholders through strategic property acquisitions.
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
E-mail: [email protected]
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.