Desert Mountain Energy Receives Permits to Drill Two Wells on its Oklahoma Kight-Gilcrease Property
The two new wells have been located in order to test the helium potential of the KGSU following earlier findings in existing wells of helium concentrations grading up to 1.3622% He in the Gilcrease Sands (see PR dated May 13, 2019). These Helium concentrations found in other wells on the KGSU are consistent with concentrations being produced from other U.S. natural gas fields in Kansas, Oklahoma, and Texas.
The specific well locations were selected in order to test the four stratigraphic zones cited above near the highest structural points on the property, which are highly prospective for helium. In addition, they will serve as the next step forward in optimizing oil production from the KGSU. The locations of the two new wells are not within close proximity to any commercial fresh water supply, a municipal water well, nor in an area under Federal jurisdiction.
Apart from information garnered by the Company's testing of existing wells in the KGSU for helium content, logs from offsetting wells displayed the overall granularity and porosity requirements for probable trapping mechanisms for Helium. The presence of thick anhydrite formations and other formational sequencing of relatively impervious layers, coupled with prior positive test results for the presence of Helium and mapping of the previously discovered oil bearing sands in the Gilcrease Sands, tend to support the conclusion that the KGSU is highly prospective for the presence of commercial reservoirs of helium. The current two well drill program is designed to test this.
The KGSU was permitted and approved by the Oklahoma Corporation Commission ("OCC") under order #375263 dated July 19,1993, as an enhanced oil recovery project. The KGSU is comprised of approximately 883.7 acres which is substantially underlain by the Gilcrease
Sand Formation. The KGSU is located 8 miles South of Wewoka, OK directly astride Highway 56. The KGSU has had historic production estimated at 1,690,240 BO by the OCC and presently has 7 wells on site, one of which is operational. The oil produced is a light sweet crude that varies from 34 API to 43 API gravity.
According to Irwin Olian, CEO of the Company, "We are very gratified to have received our drill permits from the OCC so quickly following filing and to be able to move forward at this time with our drill program on the KGSU. This gives us potential for helium production in Oklahoma as well as advancing potential for new primary oil production and the planned water-flood secondary oil production from the KGSU. These shallow vertical wells should be drillable quickly at low cost. While the Heliopolis Project in Arizona remains our flagship property and immediate priority, it is encouraging to have another property in our portfolio with strong potential for future helium production."
About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.
ON BEHALF OF THE BOARD OF DIRECTORS OF
Desert Mountain Energy Corp.
"Irwin Olian"
Irwin Olian
Chairman & CEO
For more information, contact:
Irwin Olian, President and CEO E-mail: tigertail@desertmountainenergy.com Phone: (604) 788-0300 | |
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