Production / Operations
Desert Mountain Energy Signs Long-Term Lease Agreement with Roswell Information Park Developer
Desert Mountain locks in 25-year AI data center lease, securing recurring fee streams and site for sodium battery plant.
Executive Summary
- Desert Mountain Energy (DME) has entered a 25-year lease agreement with Roswell Information Park LLC (RIP) for a proposed off‑grid AI data center on its 154‑acre property near Roswell, New Mexico.
- The lease includes modest monthly payments, a 5% management fee on all natural gas consumed by the facility for the project’s lifetime, and a 2% fee on excess electricity returned to the grid.
- All management and override fees continue for 25 to 30 years; a significant penalty clause applies if RIP withdraws within the first 24 months.
- RIP holds an option to purchase the land at a price not exceeding 4× DME’s acquisition cost, subject to a bonus payment by a preset date.
- The agreement carves out 14 acres for DME to develop a NaCl or Na‑ion battery plant, with RIP reserving first‑customer rights.
- Government support is evidenced by letters from the New Mexico Economic Development Department and Roswell‑Chaves County Economic Development Corporation.
Material Impact
- The lease formalizes and deepens the strategic relationship with Roswell Information Park, first disclosed in September 2025 through a $3.2‑million non‑dilutive funding agreement for pipeline infrastructure.
- It provides long‑term, recurring revenue streams (management fees on gas usage and grid electricity) that will grow with the data center’s power consumption, directly linking DME’s natural gas production to fee income for decades.
- The reserved 14‑acre parcel for a battery plant aligns with the December 2025 LOI with Altech Batteries for a sodium‑nickel‑chloride manufacturing facility; this offers a path to vertical integration into critical‑mineral processing and energy storage.
- The news is not a complete surprise given the existing partnership, but the specific lease terms (25‑year commitment, penalty clause, and the battery‑plant carve‑out) materially strengthen the company’s long‑term asset base and revenue visibility.
- In the context of declining share price (from $0.60 in March 2026 to $0.29 before the announcement), this news acts as a positive catalyst that validates management’s pivot toward gas‑centric data‑center infrastructure.
- The immediate cash impact is minimal (modest lease payments), so the market’s reaction will depend on perceived credibility of the data‑center timeline and the scale of eventual natural‑gas usage.
DME · Price
Company Overview
- Desert Mountain Energy explores for and produces helium, natural gas, and associated critical minerals. Its core assets are the McCauley Helium Field in Arizona (high‑grade helium, 99.9995% purity claimed) and the Pecos Slope gas properties in New Mexico.
- Historically, the flagship was helium in Arizona, but the company is pivoting heavily toward natural‑gas supply for AI data centers and battery‑manufacturing integration in New Mexico. The Roswell data‑center project is now the most visible near‑term value driver.
- Other initiatives include helium‑3/helium‑4 recovery, white hydrogen exploration, salt‑cavern gas storage (up to 3 Bcf), and carbon‑capture technology via its subsidiary DME Carbon Cap LLC.
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May 20, 2026 · 10:10