Desert Mountain Energy Makes Strides in Helium Operations in New Mexico
Desert Mountain Energy Makes Strides in Helium Operations in New Mexico

Desert Mountain Energy Makes Strides in Helium Operations in New Mexico

  • 03-Apr-2024 6:15 PM
  • Journalist: Shiba Teramoto

Desert Mountain Energy, a Canadian company specializing in helium exploration and production, has made significant progress in enhancing the adaptability and functionality of its helium processing facilities located in New Mexico. Through the installation and testing of new equipment and software, the company has established a solid foundation to meet the evolving needs of the industry concerning natural gas processing, safety, and transportation. These adjustments enable the plant to effectively manage changes in gas composition, transitioning from a nitrogen-dominated environment to one that encompasses diverse hydrocarbon molecules.

The improvements not only address current demands but also future-proof the plant, with retained components that can be repurposed for alternative projects, particularly those involving a primary nitrogen gas stream where the natural gas content falls below a certain threshold. This strategic approach underscores Desert Mountain Energy’s proactive planning and commitment to sustainable resource management within the helium sector.

Since the acquisition of the Pecos Slope West Abo gas field and its associated infrastructure in June 2023, Desert Mountain Energy has revitalized operations by significantly increasing gas throughput in a cost-effective manner. This achievement has been realized by reactivating 15 wells with marginal investment, highlighting the company's efficiency-driven approach. The company's aspirations include a series of well workovers scheduled for March 2024, aimed at surpassing daily gas production targets from established wells.

In light of these advancements, the upcoming Helium Super Summit in Houston provides a platform for industry leaders and experts to explore future challenges and opportunities in the helium market. Scheduled for October 2024, the event follows the success of its previous edition, which attracted over 400 participants. With limited space available, interested parties are encouraged to register promptly to secure their participation and remain updated on the event's agenda.

Helium is a crucial resource with diverse applications across various industries, including medical technology, aerospace, and electronics. Although helium ranks as the second most plentiful element in the universe, its availability on Earth is relatively limited, primarily obtained through the extraction of natural gas. The helium industry faces supply challenges due to the finite number of natural sources and the complexities involved in extraction.

Despite positive market prospects, helium production encounters several challenges, including aging infrastructure, geopolitical tensions in key supply regions, and the need for innovative exploration methods. Additionally, environmental considerations are driving the industry towards more sustainable extraction and production practices.

Desert Mountain Energy's recent technological advancements and strategic investments in the Pecos Slope West Abo gas field align closely with the industry's evolving demands. By increasing gas throughput and ensuring the adaptability of their facilities, the company is well-positioned to capitalize on the growing helium market. Their efficiency-focused approach, as exemplified by the reactivation of 15 wells, demonstrates commendable efforts in resource optimization and cost reduction.

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