Desert Mountain Energy Corp - DMEHF stock

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OTC Symbol: DMEHF | OTC Tier: OTCQX International

Introduction

Desert Mountain Energy Corp. (OTC: DMEHF, TSXV: DME) is a company that explores and develops oil and gas as well as mineral properties internationally, including the United States and Canada. Its primary interest is in the Holbrook Basin helium project, which spans an area of 74,421 acres located in Eastern Arizona. The company was previously named African Queen Mines Ltd. but changed its name to Desert Mountain Energy Corp. in April 2018. It was founded in 2008 and is headquartered in Vancouver, Canada.

Company Operations

DMEHF operates through several subsidiaries, including Desert Energy Corp. and Saguaro Family Land Company. The company has a strong management team with significant experience in the oil and gas industry. In terms of operations, DMEHF focuses on the exploration, development, and processing of helium and noble gas reserves through drilling and production activities. The company utilizes advanced technologies and techniques, such as horizontal drilling, etc. Overall, Desert Mountain Energy Corp. (DMEHF) is a growing exploration and production company with a strong portfolio of assets and a commitment to safe and responsible operations.

Holbrook Basin Helium Project

The Holbrook Basin Helium Project is Desert Mountain Energy Corp.'s flagship project, covering a large land area of 149,480 acres in Northern Arizona, USA. The project aims to discover and develop new sources of helium, a valuable and increasingly in-demand resource that has various industrial, medical, and scientific applications. Desert Mountain Energy Corp. has conducted extensive exploration activities in the Holbrook Basin area and has identified several potential helium-bearing structures in the region. The company has drilled and tested a series of exploration wells to gather data and assess the commercial viability of the project. The Holbrook Basin Helium Project is strategically located near existing natural gas infrastructure, which provides access to the necessary equipment and facilities to extract and process helium. Desert Mountain Energy Corp. believes that the Holbrook Basin area has the potential to become a significant source of helium for the United States and international markets.

Desert Mountain Energy Corp. has secured additional acreage for its Holbrook Basin Helium Project in Northern Arizona, USA. The company has acquired a 160-acre parcel of land adjacent to its existing leasehold, increasing its total land position in the region to 149,640 acres. Desert Mountain Energy Corp. has identified the Holbrook Basin area as a potential significant source of helium, and the additional acreage is expected to further enhance the company's exploration and development efforts. The new parcel of land has been identified as having significant potential for helium-bearing structures, and the company plans to conduct additional exploration activities in the area. The acquisition of the new acreage was completed through a cash deal, and the company has indicated that it was purchased at a favorable price.

Hydrogen Projects

In addition to its flagship Holbrook Basin Helium Project, Desert Mountain Energy Corp. also has an interest in exploring and developing other noble gases, including neon, argon, krypton, and xenon. These gases have various industrial, scientific, and medical applications and are in growing demand worldwide. Desert Mountain Energy Corp. holds an interest in the Kight-Gilcrease Sand Unit, a project located in Oklahoma, USA, which has been identified as a potential source of helium, neon, and other noble gases. The company has conducted an airborne geophysical survey in the region to identify and map the potential resources and has subsequently drilled and tested several exploration wells. The company believes that the Kight-Gilcrease Sand Unit has the potential to become a significant source of neon, argon, krypton, and xenon for the United States and international markets. Desert Mountain Energy Corp. is committed to exploring and developing these resources in an environmentally responsible and sustainable manner, while maintaining the highest standards of health, safety, and environmental protection.

Funding

In March, 2023, Desert Mountain announced the closing of an over-allotment option that was exercised by its underwriters, resulting in additional gross proceeds of $1 million. The over-allotment option was exercised following the company's public offering of units, which closed in late January 2021. The public offering involved the issuance of units, each consisting of one common share and one-half of one common share purchase warrant. The company initially issued 4,666,666 units at a price of $0.60 per unit, for gross proceeds of approximately $2.8 million. The over-allotment option involved the issuance of an additional 1,666,667 units at the same price, resulting in additional gross proceeds of $1 million. Desert Mountain Energy Corp. has indicated that the additional funds will be used for general corporate purposes, including exploration and development activities at its Holbrook Basin Helium Project and other properties.

Environmental Responsibility

Desert Mountain Energy Corp. operates with the aim of developing energy resources in an environmentally responsible and sustainable manner. It has implemented innovative and eco-friendly drilling technologies to minimize its environmental impact. The company is committed to conducting its operations in compliance with applicable laws and regulations, while maintaining the highest standards of health, safety, and environmental protection. The company has implemented several programs and initiatives to ensure that its operations are conducted safely and responsibly, including the use of advanced technologies to minimize environmental impacts.

Legal Issues

In 2020, DMEHF obtained a permit from the AOGCC for the construction of a well in the city of Flagstaff to help in their business operations. The city of Flagstaff filed a complaint against the company afterward, citing a breach of contract and that the company would pollute the well by injecting harmful materials and thus disrupt the local water source. After numerous proceedings, in 2022, a court in Coconino County, AZ dismissed every claim filed against the Company by the City of Flagstaff except one breach of contract claim, regarding a prior licensing agreement.