Desert Mountain Energy discovers new Arizona helium gas field
Desert Mountain Energy Corp. [DME-TSXV; DMEHF-OTC; QM01-FSE] has released the completion rig on both the State 10-1 and State 16-1 wells in Navajo County, Arizona. Flow tests have been conducted after perforating on both wells from zones where significant helium gas flows where found during drilling operations.
The company is of the view that the pressure and volumes on both wells during testing fall well within the normal accepted oil and gas industry practices for determination of commercial flow rate protocols, with maximum non -roducibility volume speculations not taken into consideration.
Produced dry gas samples have been collected and sent to an independent lab for a total gaseous analysis. It is expected that results from these tests will take 7-10 days. The company will address possible gas flow volumes, actual gross helium, other commercially viable rare earth gases and most likely production scenarios after testing results are received and reviewed by the team. It should also be noted the company has fully restored and prepared both drilling locations for hydro seeding with native plant and grass species, when weather conditions are considered most favorable.
Significant probable pay zones were found in both wells. Each well had only 5′ perforated of the formation with the highest resistivity, porosity and neutron gas cross over on open hole wells logs combined with where the most significant gas flows had been encountered during the June and July drilling program.
Desert Mountain considers it has other highly prospective pay zones within each well. Again, every formation the company found containing gas in both wildcat wells would previously have been considered purely as speculative and will continue as such until the company elects to drill, complete and test, thereby establishing them first as additional prospective then productive formations.
Desert Mountain Energy is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States.
On August 25 mid-day trading, shares of Desert Mountain gained $0.17 to $0.97 on a volume of 357,200 shares traded.