DME Achieves Commercial Helium Separation

Desert Mountain Energy (DME) successfully separated commercial volumes of helium from a complex natural gas stream at its processing plant in New Mexico, which is now in full commercial operation. Based on its previous statements we are cautious over whether it will produce any significant amounts of helium. The processing plant has been recirculating and enriching helium with the end product going into an end user’s tube trailer. However, there is no data on gas flow rates or what percentage of helium is being separated. According to the company, current production revenues are expected to cover corporate G&A, though will not be reflected in the Sep'24 financials. The company is focused on well workovers to increase helium production and reduce water output. The geological team is reviewing well data for enhanced helium output, while also investigating the rise of hydrogen levels in some wells to better understand the geological controls.

Want to read more?

Subscribe to akapenergy.com to keep reading this exclusive post.

Subscribe Now