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Desert Mountain and Beam Earth Focus on Hydrogen Exploration in Arizona
Desert Mountain and Beam Earth Focus on Hydrogen Exploration in Arizona

Desert Mountain and Beam Earth Focus on Hydrogen Exploration in Arizona

  • 20-May-2024 7:51 PM
  • Journalist: Francis Stokes

DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) - A Message from the President. We are delighted to announce our latest partnership with Beam Earth Ltd. to initiate hydrogen exploration in Arizona, slated for the fourth quarter of 2024. This new agreement supersedes the previous one dated July 18, 2022. Under the terms of this fresh arrangement, Beam Earth Ltd. will provide financing for the following:

  A sum of $225,000 USD is due to DME within 90 days from the date of signing.

  Covering all geophysical and associated drilling expenses, including the execution of pilot wells.

  Engineering for a combined “white” hydrogen/helium plant, leveraging DME’s existing hydrogen separation unit located at the McCauley Field in Arizona.

  Planning for a “green” hydrogen plant in Arizona.

•  Planning and engineering for ammonia and loading facilities in New Mexico and Arizona, as appropriate.

•  Conducting geophysical assessments in Chaves County, New Mexico, with a focus on “white” hydrogen.

  Planning and engineering for “blue” hydrogen processing/reformation and power generation plants in New Mexico.

DME will assume the role of operator for all wells and plants in Arizona and New Mexico. Moreover, the Company will maintain full ownership rights for all currently owned wells in New Mexico, as well as wells #1-4, #6, and #8 in Arizona. DME and Beam Earth Ltd. will collaborate to share the profits generated from hydrogen and helium production from new wells in Arizona. Additionally, this partnership creates opportunities for DME to explore helium processing from other potential sources in Arizona, should such prospects emerge.

"As reiterated before, our dedication to our Arizona initiatives remains steadfast," said Robert Rohlfing, CEO of Desert Mountain Energy Corp. "This partnership presents a non-dilutive avenue for growth, enabling DME to concentrate on advancing its helium extraction technology and optimizing returns on investment. With the initial payment and the projected activities extending into Q1 of 2025, Beam Earth Ltd. anticipates investing between CDN $3.6 and $4.3 million before DME assumes significant expenses."

The overall investment by Beam Earth Ltd. in Arizona will hinge on the volume of "white" hydrogen produced from wells and their choice regarding the utilization of DME's assets for the most efficient production of "green" hydrogen.

Desert Mountain Energy Corp. is a publicly traded resource company focused primarily on the exploration, development, and production of helium, hydrogen, natural gas, and condensate. The company prioritizes environmentally and economically sustainable helium extraction from various raw gas sources, providing essential elements for the renewable energy and high-technology sectors.

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