Desert Mountain Energy (DME), which is involved in helium exploration in Southwestern US, has received permits to drill two wells on its Oklahoma Kight-Gilcrease property.

DME, which has its headquarters in Vancouver, Canada, has been issued permits by the Oil & Gas Conservation Division of the Oklahoma Corporation Commission in Oklahoma City to drill two new primary wells during the next six months in DME’s Kight-Gilcrease Sand Unit (KGSU) oil field in Seminole County.

The two wells permitted are the KGSU 7-2B and 7-3A, which are planned to be simple, vertical wells drilled to a total depth of approximately 2,950 ft each from sites located at an altitude of about 887 ft, relatively high on the structures which are being targeted for their potential to host reservoirs of helium, oil and gas.

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% in the Gilcrease Sands.

Irwin Olian, CEO of DME, said, “We are very gratified to have received our drill permits from the OCC [Oklahoma Corporation] 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.”

Drilling is expected to start within the next two months after securing the requisite rigs and equipment.

The KGSU is located eight miles South of Wewoka, Oklahoma.