Desert Mountain Energy progresses with the McCauley Helium Field
Desert Mountain Energy Corp is pleased to announce that it has been granted an exemption to the 640-acre spacing requirements allowed by the State of Arizona.
This exemption will allow Desert Mountain Energy to drill wells on 40 acres of spacings as opposed to the usual 1 well per section that is the normal practice allowed by the Arizona Oil and Gas Commission. Flow lines for the 3 proposed hydrogen wells have been trenched and buried to transport the raw gaseous mixture for separation at the McCauley Processing Facility.
The plant design allows for the hydrogen to be separated from the other elements while at the same time allowing the capture of both helium and hydrogen for purification. The 640-acre spacing exemption allows DME and Beam Earth Ltd. to explore and better optimize hydrogen and helium discoveries in upper possible formations.
“Beam Earth’s expertise in commercializing hydrogen allows us to look at the potential of using the hydrogen and nitrogen found in our fields to investigate the manufacture of ammonia,” says Robert Rohlfing, CEO of DME. “The J.O.A. signed between us reduces our costs and supplies the expertise to exploit this discovery.”
A geophysics program will be launched in April 2023, and drilling is planned for early June 2023 with results expected in early July 2023. Furthermore, Desert Mountain Energy will be looking to maximize potential development through all available manners including Federal IRA and business development opportunities.