Desert Mountain Energy has commenced the commercial production of helium in New Mexico and is delivering volumes to end-users via tube trailers.
The exploration and production company’s announcement comes after resolving several issues faced by Desert Mountain Energy during the start-up phase of the plant.
Revenue from the production is expected to cover all overall corporate G&A expenses.
“The company anticipates a gradual rise in sales volumes and revenue, with a current emphasis on well workovers and reducing the overall small percentage of produced water,” Desert Mountain Energy said in a statement.
Due to issues related to permits, Desert Mountain Energy had to relocate its helium processing and extraction facility from Arizona to New Mexico. Luckily, the company opted for a modular plant design, so the move was possible.
Read more: Desert Mountain Energy moves on New Mexico
During the facility’s relocation from Arizona, Desert Mountain Energy integrated an AI component into the plant. The AI is currently undergoing training through data collection while commercial processing continues.
Data points are essential for the system to learn and function effectively as more wells are brought online. Each well possesses distinct chemical compositions that the plant must adapt to.
The plant is nearing autonomy, requiring minimal human intervention for operation.
Desert Mountain Energy began operations at the plant in June, initially focusing on optimisation and potential programming improvements for around 60 to 90 days.
Read more: Desert Mountain Energy starts up helium processing plant in New Mexico
The company wants to achieve a final product of 99.9995% pure helium following the completion of the initiation process, with the intention of selling to targeted markets to optimise pricing.
Gaseous mixtures that are fed through the plant from the natural gas stream vary from well to well. These mixtures include helium, n-pentane, n-butanes, hexanes, and condensate oils, in addition to methane and other associated mixtures.
Helium Super Summit
Join gasworld in October 2024 as our Helium Super Summit heads to Houston. More information, including our theme and agenda, will be released over the coming weeks – you can register your interest to ensure you stay updated.
Our Helium Super Summit 2023 agenda was focused on the most significant challenges facing the helium business in 2023/24 and the uncertainty that hangs over the market and its array of end-users. Our 2023 summit has had over 400 attendees and is sold out, so we recommend securing your space. You can book your ticket or register interest here https://bit.ly/gasworldconferences .
Interested in speaking and contributing? Get in touch with our Content Director, Rob Cockerill, at [email protected]
