Desert Mtn arranges $3.2M (U.S.) financing with Roswell

Executive Summary

• Desert Mountain Energy Corp. entered a non‑dilutive financing agreement with Roswell Information Park LLC for an initial $3.2 million commitment to fund pipeline, power and gas‑storage infrastructure supporting a planned hyperscale AI data‑centre campus.
• The agreement funds final engineering, right‑of‑way acquisition and construction of ~14 mi of 8‑in. natural‑gas pipeline, plus main‑line connection costs for long‑term supply.
• Additional revenue streams are anticipated from on‑site gas storage (up to ~3 bcf capacity), pipeline operations, helium production and future CO₂ capture/utilization projects.

Key Details

• Financing Structure: Non‑dilutive cash commitment of approximately $3.2 million from Roswell Information Park LLC; further contracts will be executed as planning, engineering and permitting milestones are met.
• Infrastructure Scope – Pipeline:
• Construction of ~14 mi of 8‑inch pipeline to create a redundant natural‑gas pathway to the behind‑the‑meter power generation site.
• Funding also covers main pipeline connection costs for long‑term gas supply.
• Gas Storage Potential:
• Base geological study identifies a formation within Desert Mountain’s leasehold capable of storing up to 3 billion cubic feet (bcf) of natural gas.
• Planned drilling of 13 wells (~3,900 ft deep) targeting the Lower Abo sand for natural‑gas and helium (He‑3, He‑4, H₂) potential; includes core sampling and possible conversion to storage/production wells.
• Additional Infrastructure:
• Design of a 20‑inch pipeline to maintain power supply during critical conditions.
• Exploration of white hydrogen prospects in shallower formations adjacent to the storage site, with future integration into the gas stream or conversion via fuel cells for grid delivery.
• Revenue Opportunities: Anticipated new streams include:
• Gas‑storage operations (service fees, capacity rentals).
• Local pipeline management and transport tariffs.
• Helium extraction and sales.
• CO₂ capture, utilization and related service contracts.
• Strategic Rationale: Non‑dilutive financing preserves shareholder equity while enabling Desert Mountain to develop critical infrastructure for hyperscale data‑centre tenants, enhancing long‑term cash flow diversification beyond traditional hydrocarbon production.

Notable Quotes

“This agreement represents a critical step forward in building the infrastructure required to support hyperscale data centres in New Mexico,” said CEO Robert Rohlfing. “The funding arrangement ensures Desert Mountain Energy advances its strategic projects without shareholder dilution while positioning the company to generate long‑term revenue from gas storage, pipeline operations and future emission solutions.”