DESERT MOUNTAIN ENERGY ANNOUNCES $3.2M NON-DILUTIVE FUNDING AGREEMENT WITH ROSWELL INFORMATION PARK
Desert Mountain Energy (OTC:DMEHF) has secured a $3.2 million non-dilutive funding agreement with Roswell Information Park LLC for key infrastructure projects. The funding will support the construction of a 14-mile, 8-inch pipeline and associated infrastructure to supply natural gas to a planned hyperscale AI data center campus.
The company has identified a potential underground natural gas storage formation with up to 3.0 Bcf capacity. The development plan includes drilling 13 wells to ~3,900 feet in the Lower Abo Sand Formation, evaluating for helium-3, helium-4, and hydrogen potential. The project will generate revenue through gas storage operations, pipeline management, and future CO₂ capture initiatives.
- None.
- Significant development work required before revenue generation
- Project success dependent on completion of hyperscale data center campus
- Drilling program carries inherent geological and operational risks
TSX.V: DME
The initial funding commitment totals approximately
P ipeline and Power Infrastructure
Under the agreement, Roswell Information Park will fund:
- Final engineering, ROW acquisition, and construction of approximately 14 miles of 8-inch pipeline, creating a redundant and secure pathway for locally produced natural gas to reach the "behind-the-meter" power generation site.
- Main pipeline connection costs for long-term natural gas supply.
This infrastructure is designed to support the Park's planned hyperscale AI data center campus, where uninterrupted energy delivery is a critical requirement.
G as Storage and Development
DME has completed a base geologic study identifying a potential formation within its current leasehold capable of serving as an underground natural gas storage unit. Early evaluations indicate capacity of up to 3.0 Bcf, providing redundancy for the Roswell Information Park in the event of scheduled or unscheduled pipeline downtime.
Development plans include:
- All wells drilled will be evaluated for previously non-produced zones possibly containing helium-3, helium-4 and hydrogen.
- Drilling 13 wells to ~3,900 feet, beginning with core sampling for testing and potential conversion into a storage or production well.
- Targeting the Lower Abo Sand Formation for both natural gas and helium potential.
- Construction of a 20-inch pipeline to maintain power supply during critical conditions.
- Geologic engineering.
For hyperscale data centers, dependability is paramount, and downtime is intolerable. Major pipelines across the
Advancing Hydrogen and Emissions Solutions
The proposed storage site lies on the western edge of a geologic trend identified by DME as prospective for white hydrogen in shallower formations. Future work will assess integration of hydrogen into the gas stream or conversion into power using advanced hydrogen fuel cells for delivery to the Southwest power grid.
Additionally, DME is collaborating with Roswell Information Park, hyperscale tenants, regulators, and CO₂ end users to incorporate long-term emission control solutions, with associated costs to be borne by the Park.
Strategic Impact
By structuring this agreement as non-dilutive funding, DME secures financial support while preserving shareholder value. The project is expected to generate new revenue streams from:
- Gas storage operations
- Local pipeline management
- Future CO₂ capture and utilization initiatives
- Sales of processed natural gas and helium production
"This agreement represents a critical step forward in building the infrastructure required to support hyperscale data centers in
ABOUT DESERT MOUNTAIN ENERGY
Desert Mountain Energy Corp. is a publicly traded resource company primarily focused on the exploration, development and production of helium, hydrogen and natural gas. The Company is focused on helium extraction from different raw gas sources in an environmental and economic manner, supplying elements deemed critical to the renewable energy and high technology industries.
We seek safe harbor
"Robert Rohlfing"
Robert Rohlfing
Exec Chairman & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in polices of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward looking statements and information herein include but are not limited to statements regarding the Company's anticipated performance in the future the planned exploration activities, receipt of positive results from drilling, the completion of further drilling and exploration work, and the timing and results of various activities.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company and its operations to be materially different from those expressed or implied by such statements. Such factors include, among others, changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of the Company's exploration operations, no material adverse change in the market price of commodities, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company does not intend to, and nor does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.
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SOURCE Desert Mountain Energy Corp.
FAQ
What is the value of Desert Mountain Energy's (DMEHF) funding agreement with Roswell Information Park?
How many wells does Desert Mountain Energy plan to drill in the Lower Abo Sand Formation?
What is the storage capacity of Desert Mountain Energy's planned underground gas storage unit?
How will Desert Mountain Energy generate revenue from this project?
What infrastructure will be built with the Roswell Information Park funding?
