Desert Mountain Energy announced the successful disassembly and relocation of the helium processing plant to the West Pecos Slope Abo Gas Field in New Mexico for reassembly. Anticipating a duration of five to six weeks for the reassembly process, the company envisions starting plant operations after the completion of pressure testing for vital components, according to an Aug. 16 news release.
“Our team has utilized our original design criteria to complete this strategic move in record time, on schedule and under our planned budget for this phase,” Robert Rohlfing, CEO of Desert Mountain Energy, said in the release. “Cash on hand at the end of last quarter was approximately $14.7 Million CDN and we intend to maintain those solid cash balances. On-going well workovers will be out of cash flow.”
Desert Mountain Energy has commenced actions to improve the flow lines, which involve pigging, replacement of certain sections and maintenance procedures. The rise in well flow line pressures, attributed to the temporary shutdown of the IACX gas plant for upkeep, has prompted these measures, the release reported.
Additionally, the company started the removal of choke points and will persist in this endeavor spanning the following three to four months, while also acquiring smaller volume compressors to augment production from wells with elevated helium levels, according to the news release.
The company's geologic team identified which wells could potentially by targeted to maximize helium production, the release said.
"Under current contracts, the company will not be due to pay royalties on any inert gases recovered through plant operations. As mentioned previously by the company, the condensate values and BTU values can vary widely between the wells," the release reported. "DME has initiated discussions with natural gas end users regarding the purchasing of natural gas after the current contract expires. All necessary permits for current operations are in hand."