DME Relocates McCauley Helium Processing Facility to New Mexico

Desert Mountain Energy (DME) completed the acquisition of the West Pecos Slope Abo Gas Field in New Mexico and will be moving its McCauley Helium Processing Facility to the new location due to delays and long lead times associated with enhanced recovery permitting in Arizona. The relocation process is expected to take 8-12 weeks. DME will continue optimising wells for helium production and plans to maintain cash flow to complete ongoing scheduled work. The company will halt drilling operations in the Holbrook Basin in Arizona but intends to re-enter the state with a new facility once permits have been granted. The equity market has clearly lost confidence in DME given the constant delays and now abandonment of the McCauley project with the shares falling around 60% on the news.

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