Desert Mountain Energy Corp. (DME), a publicly traded resource company focused on helium, hydrogen, and natural gas, has provided an operational update regarding its activities in New Mexico and Arizona, along with insights into its 2024 financial performance.
DME has successfully brought its helium processing facilities at the West Pecos Abo Gas Field online after overcoming initial software and equipment challenges. The plant is now effectively separating helium from natural gas, with the first truckload of helium expected to be dispatched soon. The company anticipates filling a truckload every 18 to 21 days based on current production levels, with potential increases as gas volumes rise.
Currently, DME is selling natural gas monthly but has not yet made sales into the Waha hub. The company is actively negotiating to secure a more favorable long-term natural gas agreement. Additionally, the Rozwell area gas field has been identified as a promising site for data centers. DME is piloting small modular cryptocurrency mining operations and exploring partnerships for a 250 MW net-zero energy data center.
Owning its workover rig enables DME to conduct targeted maintenance efficiently, avoiding additional costs associated with external rig services. This strategic move allows the company to assess and isolate the most productive gas-bearing zones effectively. Proactive maintenance on older pipelines has also been performed to prevent leaks, contributing to cost savings as no wells currently require artificial lift for saltwater extraction.
DME has outlined comprehensive strategies for maximizing natural gas and helium production over the next 24 to 36 months. More than 60% of its leases in New Mexico are on Federal Bureau of Land Management properties, which may benefit from favorable regulatory changes under the new administration in Washington, D.C.
In Arizona, DME is engaged in discussions with regulatory bodies and lawmakers to establish clear guidelines that will support helium production. The company values the contributions from various stakeholders, including federal and state legislators and local chambers of commerce.
Collaborations with Beam Earth Ltd. and Hethos Ltd. are underway to explore hydrogen opportunities alongside helium projects. These discussions include the potential for a joint processing facility that utilizes hydrogen cells for enhanced energy efficiency, reportedly achieving an 18% reduction in electricity consumption.
DME continues to address ongoing legal matters with the City of Flagstaff, where recent court rulings have reduced the number of claims against the company from eleven to six.
The company recently completed its audited financials for 2024 after changing auditors last year. DME reported a significant reduction in net loss, decreasing from $0.14 to $0.05 per share, reflecting improved operational efficiency and management’s focus on profitability moving forward.
With over $18 million in treasury funds and an optimistic outlook toward achieving profitability in 2025, DME remains committed to responsible resource extraction while supporting advancements in clean energy technologies.