InvestmentPitch Media Video Discusses Desert Mountain's Announcement of Discovery of Helium of up to 1.36% Following Tests on Gas Samples from 3 Existing O & G Wells in Oklahoma - Video Available on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - May 14, 2019) - Desert Mountain Energy (TSXV: DME) has announced positive results for the presence of helium following analytical tests performed on gas samples from three existing oil and gas wells in Seminole County, Oklahoma. These initial test results, with concentrations up to 1.3622% helium, from the company's Kight-Gilcrease Sand Unit oil field or "KGSU", were viewed by management as highly encouraging and suggest the potential for future development of helium production from this oil field.
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The three wells reporting positive results for helium were situated higher on structure in the KGSU. Three other wells lower on structure were also sampled but predictably did not return notable helium values, which is reflective of helium's tendency to rise in structure until it bumps up against an impermeable cap.
Commercial viability of helium production from the KGSU will ultimately depend upon grade, pressure and size of the helium reservoir. Next steps would be drilling of several new shallow gas wells in the KGSU to test for the presence and concentrations of helium in the three zones above the Gilcrease Sands as well as to test the extent of the potential helium reservoir.
The KGSU, which is not located within an environmentally sensitive area nor on a known Native American reservation, is substantially underlain by the Gilcrease Sandstone common source of oil supply, and comprises an area of approximately 884 acres. The KGSU project is situated in an area of Oklahoma which has been host to numerous helium bearing gas wells with commercial production grades typically ranging from 0.6% to 1.4% helium. The Hugoton Field in Kansas, Oklahoma and Texas, among the nation's largest natural gas fields, has produced helium ranging from 0.3% - 1.92%, with future production grades estimated to be in the range of 0.5%.
By way of background, the KGSU was permitted and approved by Oklahoma Corporation Commission or "OCC" in 1993, as an enhanced oil recovery project primarily utilizing water-flood secondary recovery operations. The oil-bearing pay zone was estimated by the OCC to be from 10 feet to 40 feet in width and to occur at a subsurface depth of approximately 2,726 feet to 2,810 feet. It has had historic production estimated at approximately 1.7 million barrels of oil by the OCC and presently has 7 wells on site, one of which is operational. The oil produced is a light sweet crude that varies from 34 API to 43 API gravity.
Irwin Olian, President and CEO, stated: "We are very excited by the gas test results at the KGSU, as they confirm the presence of helium gas on the property in concentrations typically found in other producing natural gas fields in the U.S. While the Heliopolis Project in Arizona remains our flagship property and immediate priority, it is encouraging to have another property in our portfolio with strong potential for helium production down the road. The KGSU also remains a secondary water flood prospect for oil production, which we hope to initiate in the next year."
Targeting work and permitting is continuing at the company's flagship Heliopolis Helium Project in Arizona's Holbrook Basin, with management looking forward to its upcoming drill program to test three targets in different areas in the Basin.
There is currently a global helium shortage despite continued liquidation of inventories by the U.S. Government from its National Helium Reserve, which is projected to be essentially exhausted within another two years. Desert Mountain Energy has some excellent material on its website about the importance of helium and its many uses across a number of industries.
For more information about the company, please visit its website at www.DesertMountainEnergy.com, contact Irwin Olian, President and CEO, at 604-788-0300 or by email at tigertail@DesertMountainEnergy.com. Corporate Communications is handled by Carrie Howes, who can be reached at 416-837-0075 or by email at carrie@DesertMountainEnergy.com.
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