DESERT MOUNTAIN ENERGY Corp. announced that it has closed on the purchase of the West Pecos Slope Abo Gas Field and gas gathering system located in Chaves County, New Mexico. The Company has assumed operations and the revenue stream from the existing wells.

The Company secured a contract for the near term to rent a compressor to boost natural gas sales during line pigging and plan for increasing gas flows. That compressor was hooked in and was online compressing gas into the sales line on 07/01/23. Since the commissioning of the McCauley Helium Processing Facility in January 2023, the Company has been working diligently towards declaring commercial production of Helium from the plant.

However, despite lengthy engagement with the Arizona regulatory authorities, the Company has become frustrated with repeated delays and long lead times associated with enhanced recovery permitting. At this point in time, the Board and Management have come to a decision to take advantage of the inherent flexibility of their proprietary plant design and will move the McCauley Processing Facility to its newly acquired West Pecos Abo Gas Field in New Mexico. Current estimates for relocation of the plant are between 8-12 weeks, including reassembly and hookup.

The primary permitted compressor location has the required air quality permits in place, sufficient for all intended operations. The Company is moving ahead with finalizing plans to pig flow lines to lower flow gathering system line pressures and will then begin removing the most critical choke points. As stated in the previous press release on 06/19/23, the geologic team is evaluating initial wells for optimization to maximize helium production.

DME's goal is to target where independent gas analysis tests show helium values above 0.700% or where combined with low nitrogen, high condensate values and high BTU ratings. The Company has not independently verified the gas analysis provided by the seller.