Dear Valued Investor Partners,
We hope this update finds you well. This has been another month of tangible progress toward bringing the new wells into production. Please find a summary of current operations across the ASE Lois LP below.
FIELD INFRASTRUCTURE — FACILITIES PROGRESSING
The infrastructure required to bring the new wells online is now coming together quickly. New flow lines for the Lois Anne #1-1 and #2-1 have been trenched and buried, at the request of the surface owner. The tank battery is almost complete and is in the final stages of being plumbed up. The gas line running from the Lois Anne tank battery back to the Oddfellows tank battery is scheduled to go in next, after which Bates will be scheduled to bring the meter and plumb in the gas sales line. With this work progressing, we anticipate being in a position to turn on the Lois Anne #2-1 early next week, with the Lois Anne #4-1 to shortly follow.
LOIS ANNE #1-1 WELL
Status: Producing
The Lois Anne #1-1 continued to produce steadily through the month. We plan to drill out the bridge plug and re-open the Wilcox perforations once the disposal well is commissioned, which is expected to deliver a substanial uplift in production.
LOIS ANNE #2-1 WELL
Status: Shut-in Awaiting Flow Line Connection
Following the unsuccessful open hole acid frac attempt on the Viola formation, a cast iron bridge plug was set over the formation and attention moved to the Booch. The Booch, at approximately 3,300 feet, showed excellent log shows and samples during drilling and was selected for completion. It was perforated, treated with acid, and then fracture stimulated. Initial results were limited in fluid volume but positive in gas volumes.
The well is currently shut-in awaiting flow line connections to send gas to sales. With the new buried flow lines now in place and the tank battery nearing completion, we anticipate bringing this well online early next week. Once opened up, fluid levels will be shot approximately one week later to check for fluid entry while the well is left open.
LOIS ANNE #3-1 WELL
Status: Drilled and Uncompleted, Awaiting Disposal Well
The Lois Anne #3-1 remains drilled and uncompleted, with completion held pending commissioning of the disposal well. Having the disposal infrastructure in place is an important step before bringing this well into production. After meeting with our geologist, John Dowds, he noted that the Lois Anne #3-1 would benefit greatly from a submersible pump, which would allow us to move between 800 and 1,000 barrels of fluid per day, with an estimated oil cut of between 10-15%.
LOIS ANNE #4-1 WELL
Status: Shut-in Awaiting Flow Line Connection
The Lois Anne #4-1 was drilled to 4,250 feet, production casing was set, and the well was perforated in the Booch formation at approximately 3,320 feet. The Booch was fracture stimulated with 42,000 pounds of sand. The well showed excellent log shows and samples during drilling (in the Booch). During swabbing we observed strong gas kicks, and improving oil cut.
The well is currently shut-in awaiting flow line connections. Flow line work on this well will follow the Lois Anne #2-1, and we anticipate getting this well into production in the next couple of weeks.
LOIS ANNE #5-1 AND #6-1 WELLS — PROGRAMME PIPELINE
The Lois Anne #5-1 and #6-1 wells remain scheduled to follow in the drilling programme, and both will target the Booch formation, consistent with the strategy that has guided our most recent completions. As shown on the map below, the location for the #5-1 has now been selected, with the well projected to intercept approximately 20 feet of Booch formation. The #6-1 is proposed to be drilled to the east of the #4-1 and is projected to also intercept up to 20 feet of Booch payzone.
CARTER REYNOLDS WELL
Status: Producing
The Carter Reynolds produced as normal through the month at approximately 2.76 barrels of oil per day, aside from two short shut-in periods. The first, from 14 to 16 May, was for electrical work on the utility poles. The second, from 26 to 31 May, was to patch the separator. Both items have been addressed and the well is back to normal operation.
ASE 1 WELL
Status: Temporarily Shut-in
The well is awaiting approval of the saltwater disposal well, after which the final scope of work will need to be completed before the well can enter production.
ASE 2 WELL
Status: Producing
The ASE 2 ran smoothly through the month with very few issues. The engine was down for half a day on the 15th of May, after which it was repaired and the well returned to production.
DISPOSAL WELL — LOIS #1 WELL
Status: Awaiting OCC Final Approval
The Lois #1 disposal well application remains with the Oklahoma Corporation Commission, awaiting transfer approval, after which the disposal well permit will be filed. Commissioning of the disposal well is the key that unlocks completion and production optimisation activity across several wells in the ASE Lois LP, including the #3-1 completion and the re-opening of the Wilcox perforations on the #1-1.
OVERALL PROGRAMME OUTLOOK
We appreciate the continued patience of our investors. The project is now firmly in a phase of tangible activity, with infrastructure being completed, the Lois Anne #2-1 expected online imminently, and the #4-1 to follow shortly after.
Our next scheduled investor portal update will be released on or before July 11th, 2026, with milestone updates issued in between as production activity progresses.
Best regards,
THE ASE TEAM
