Desert Mountain Energy Starts Helium Production in New Mexico

Desert Mountain Energy has officially launched its commercial helium production operations in New Mexico, marking a significant milestone for the exploration and production company. The company is now delivering helium to end-users via tube trailers, following the successful resolution of various start-up challenges encountered during the plant’s initial phase.

This achievement comes after Desert Mountain Energy encountered and addressed several issues related to the plant’s start-up. The company expects that revenue from helium production will cover all general and administrative expenses, providing a solid financial foundation. The company has forecasted a gradual increase in both sales volumes and revenue. Currently, Desert Mountain Energy is focusing on optimizing well workovers and reducing the relatively small percentage of produced water.

Initially, the company faced setbacks due to permitting issues, necessitating the relocation of its helium processing and extraction facility from Arizona to New Mexico. Fortunately, the modular design of the plant facilitated this move. During the relocation process, Desert Mountain Energy also integrated an Artificial Intelligence (AI) system into the facility. This AI is currently being trained through data collection, which is crucial for its effective functioning as the plant brings more wells online. The AI system needs to adapt to the unique chemical compositions of each well to optimize the production process. As a result, the plant is approaching a state of near-autonomy, requiring minimal human intervention for its operation.

Operations at the New Mexico plant commenced in June, with the initial focus on optimizing and improving programming for a period of approximately 60 to 90 days. The goal is to achieve a final helium product purity of 99.9995% upon completion of the start-up phase. This high level of purity is aimed at meeting the requirements of targeted markets and optimizing pricing.

The plant processes gaseous mixtures from the natural gas stream, which vary from well to well. These mixtures include helium, n-pentane, n-butanes, hexanes, and condensate oils, alongside methane and other associated hydrocarbons. Desert Mountain Energy’s efforts are geared towards refining these mixtures to produce high-purity helium efficiently and effectively.

Desert Mountain Energy Corp., a publicly listed resource company, specializes in the exploration, development, and production of helium, hydrogen, natural gas, and condensate. The company is dedicated to extracting helium from various raw gas sources in an environmentally and economically sustainable way. By doing so, it supplies critical elements essential for the renewable energy and high technology industries. Desert Mountain Energy's commitment to responsible resource extraction supports advancements in clean energy technologies and innovation, positioning the company as a key player in addressing the needs of these vital industrial sectors.