Desert Mountain Energy Corp. announced that it has received the permit for the first offset well, (the 1-1) to the McCauley Field discovery well, (1-1). This well is situated on a local structural high, where the porosity and permeability are expected to be highly productive in multiple formations.

The Company expects the rig to be mobilized and the well spudded by the end of this week. The 1-1 well is planned to reach a total depth of approximately 4300 feet. This location is situated on a structural high with very specific trapping mechanisms which the Company's geologic team has previously identified and found in the 11-1 well.

This well should encounter multiple pay zones in the lower Permian, Pennsylvanian, Mississippian, Devonian, with a total depth in the Precambrian Granite to gather further data for other planned wells outside of the McCauley field. Completion procedures will begin once the rig is released after the drilling of the Gunnar Dome prospect.