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DME Acquires the West Abo Gas Field in New Mexico

Desert Mountain Energy (DME) signed of a letter of intent to acquire the Pecos Slope West Abo Gas Field in New Mexico, set to close on June 30, 2023 from a privately held company at a total cost of US$2.5mm. Currently the field holds 188 gas wells and 1 water disposal well but is not equipped with any helium processing facilities. However, wells in the area have demonstrating elevated helium values and DME is aiming to implement a revitalisation plan by re-configuring the gas gathering system, designing a mobile modular helium processing plant, and selecting wells for work-overs. The gas field exhibits promising helium and methane levels, with the company expecting increased helium production and reserves through reworked wells. New Mexico is a relatively untouched area when it comes to helium exploration. The Tocito Dome field (NTEC) is the only exploration effort taken to date in north-western New Mexico.

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