Desert Mountain Energy Corp. (DME) has completed the acquisition of Kight Gilcrease Sant Unit (KGSU) oil and gas project which it hopes will lead to an expansion of its helium exploration activities.
The KGSU comprises an area of approximately 883.7 acres in Seminole County, Oklahoma, which is substantially underlain by the Gilcrease Sandstone common source of oil supply.
“We are extremely pleased to have closed our acquisition of the Kight Gilcrease Sand Unit in Seminole County, Oklahoma,” Irwin Olian, Desert Mountain Energy CEO.
“It represents a strong opportunity to develop significant cash flow for the Company and at the same time it gives us a base of operations in Oklahoma.
“Oklahoma has been one of the leading producers of helium among states in the US and this will provide us with access to potential helium opportunities in the region as an adjunct to our flagship Heliopolis helium project in Arizona. Immediate plans for the KGSU contemplate reworking of existing wells in the field.”
Under the terms of the definitive Purchase Agreement between Desert Mountain Energy Corp., Seminole Productions, LLC, an Oklahoma private company and Desert Energy Corp., Desert Mountain Energy Corp.’s US subsidiary, Desert Mountain Energy Corp. has acquired certain oil and gas interests comprising the KGSU.
DME is paying $180,000, of which $90,000 is payable on closing and US$90,000 is payable within one year thereafter.
DME also said in a statement, “It is not located within an environmentally sensitive area or on a known Native American reservation.”
DME, with headquarters in Vancouver, Canada, is engaged in exploration and development of helium, oil and gas and mineral properties in the Southwestern US. It is also involved in exploration and development of helium resources in Arizona’s Holbrook Basin.