Desert Mountain Energy Corp. · TSXV:DME
Desert Mountain Energy — Investor Presentation (November 2020)
23 slides from Desert Mountain Energy's investor presentation, November 2020
Slide 1: Helium and Oil & Gas in the U.S. Southwest
HELIUM AND OIL & GAS IN THE U.S. SOUTHWEST
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statements in this presentation that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors. Such forward-looking information represents management's best judgment based on information currently available. No forward-l
Slide 3: Desert Mountain Energy Corp.
DESERT MOUNTAIN ENERGY CORP. ✓ Exploration and development of Helium and Oil & Gas properties in the U.S. Southwest. ✓ High-grade Helium project in Arizona and excellent permitted Helium, Oil & Gas Project in Oklahoma. ✓ Proven, successful management team that knows how to find, develop, package and
Slide 4: Management Team
Management Team • Robert Rohlfing, (CEO President and Chairman), is a seasoned oil & gas industry operations executive with a strong geological background and over 25 years’ experience in formulating, conducting and managing successful exploration, drilling, development and production programs for o
Slide 5: What is Helium?
What is Helium ? • An inert, monatomic gas that is non-flammable, colorless, odorless, tasteless, and has a boiling point of -452.07 f (-268.93 c), lowest of any element on earth. • Symbol is He and its atomic number is 2; part of the noble gas group. • Prevalent throughout the universe but rare on
Slide 6: Uses of Helium
Uses of Helium Helium plays a critical role in the manufacture of high capacity hard drives, barcode readers, computer chips, semiconductors, LCD panels and fibre optic cable; as a refrigerant in cryogenics research; and as a coolant for nuclear reactors, MRI machines and space vehicles.
Slide 7: In Most High-Tech Coolant Applications there is NO Substitute
In Most High-Tech Coolant Applications there is NO Substitute Liquid Helium is used as a coolant for superconductor magnets in MRI machines and Particle Accelerators Used to purge gas in rocket engine systems
Slide 8: Helium-Filled High Capacity Hard Drives
Helium-Filled High Capacity Hard Drives increase capacity by 50% and energy efficiency by 23%. Now used to power industry’s largest data centers including Netflix Video Streaming. Helium Neon Laser Helium is required for Barcode Readers Manufacturing Fiber Optics
Slide 9: Google's Project Loon and Helium Balloons
More than half the world is still without internet access. Google’s Project Loon aims to fix this through a network of Helium gas filled balloons traveling on the edge of space. With a new balloon launched every 30 minutes, it is designed to extend internet connectivity to people in rural and remote
Slide 10: 2017 Estimated Domestic Helium Consumption and Usage by Application
2017 Estimated Domestic Helium Consumption and Usage by Application Estimated domestic consumption of Grade-A helium was 1.5 billion cubic feet (Bcf) in 2017, and it was used in these applications. Source : U.S. Geological Survey, Mineral Commodity Summaries, January 2018
Slide 11: World Helium Production
World Helium Production (Data in Billion Cubic Feet) 7 5.25 Canada Billion Cubic Feet Poland Russia Australia Algera 3.5 Qatar Bureau of Land Management United States 1.75 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: U.S. Geological Survey, Mineral Commodity S
Slide 12: Holbrook Basin
Holbrook Basin
Slide 13: Exploration for Helium and Oil & Gas in Arizona's Prolific Holbrook Basin
• Early mover among junior explorers in the Helium space. • 81,328 acres of key Helium prospects under lease throughout the Holbrook Basin. Among the highest He grades in world produced there ranging from 8% to 10% vs. benchmark commercial grades of 0.3% to 1%. EXPLORATION • World’s best address for
Slide 14: The Holbrook Basin
• A large salt basin approximately 160 mi. by 100 mi. with thickened sedimentary rocks. • Situated in east-central Arizona South West of the defiance uplift near the South margin of the Colorado plateau in Apache, Navajo & Coconino Counties. THE • Highly prospective for Helium, oil & natural gas and
Slide 15: The Holbrook Basin
THE HOLBROOK BASIN G H Diagrammatic northeast-southwest geologic cross section from the Mogollon Rim to the Defiance uplift (From Peirce, 1970). This Figure shows line of cross section. The distance from G to H is about 150 miles. Not to scale.
Slide 16: Geological Setting
GEOLOGICAL SETTING The Pinta Dome, Navajo Springs & East Navajo Springs gas fields characterized by: (i) anticlinal features; (ii) favorable reservoir rocks and (iii) impermeable caprock traps. Anticlinal Features • An anticline is an arch-shaped fold with the oldest beds at its core. Typically conv
Slide 17: Reservoir Rocks
Reservoir Rocks • Helium in the Holbrook Basin generally found in pay zones 60-70 ft. wide in the Coconino sandstones and Fort Apache limestones at depths of approximately 1050 ft. • These reservoir rocks are abundant in the Holbrook Basin. • Coconino sandstones are particularly hospitable to hydroc
Slide 18: DME's time has come!
DME’s time has come! DESERT MOUNTAIN ENERGY ANNOUNCES SIGNIFICANT HELIUM PERCENTAGES IN TWO NEW WELLS IN ARIZONA State 10-1 • Flow rate of 24,214 MCFGPD • The average gas analysis showed: ✓ Helium 7.1321% ✓ Nitrogen 77.0837% ✓ CO2 4.0183% ✓ Methane and other assorted minor gases. 2.6512% State 16-1
Slide 19: DME's Lease Holdings & 2D Seismic Geophysical Lines, Holbrook Basin
DME’s Lease Holdings & 2D Seismic Geophysical Lines, Holbrook Basin, Arizona Coconino County SEISMIC LINE MC-5N LINE MG4 METEOR CRATER PROSPECT | Navajo County | | 1 WINSLOW NORTH PROSPECT | Web Resource 251 | He Showings @ 28° Winslow ~ F sastuyate, Tucren O86 Tete “Besoil He — Holbrook HOLBROOK WE
Slide 20: DME's Initial Drill Target at the Woodruff SE Area
DME?’s Initial Drill Target at the Woodruff SE Area (Wenner P Sa<T6NTRI2E TASNIR22E _WOODRUFF SEINE 2 ib i fags / Oe : ety ~ cy ASLD - Desert Mountain Energy Corp Leases lil BLM/Desert Mountain Eneray Corp Leases lll Owned by Oxhers Hl t [Fast Down Din N fe Faute stip strike fe synatine [> Antaine W
Slide 21: Plan to Production
PLAN TO PRODUCTION • Total number of production wells projected 50 to 55 • Gross revenue per well based on crude helium @ $275mcf is projected at $8,942,000 • Total projected capital expenditure including all drilling and infrastructure over 6 years $45,000,000 • Production starting October 2021 wit
Slide 22: Capital Structure
CAPITAL STRUCTURE Outstanding shares: 57,952,669 Options: 4,355,000 Warrants: 16,192,709 Fully diluted: 78,500,378 TSX Venture Exchange: DME U.S. OTC: DMEHF Frankfurt Exchange: QM01
Slide 23: Contact Information
CONTACT INFORMATION Robert Rohlfing, President & CEO Don Mosher, V.P. Capital Markets & Director E-mail: [email protected] Email: [email protected] U.S. Phone: (918) 752-7020 Phone: (604) 617-5448 Website: www.desertmountainenergy.com
Desert Mountain Energy — Investor Presentation (November 2020) on 6ix