Dear Valued Investor Partners,
We hope this update finds you well.
Please find below your July 2026 operational update for the ASE Lois LP.
July has been one of the more productive months, both in the field and in the planning room. We have first gas flowing to sales from the Lois Anne #2-1, a strong fluid level result on the Lois Anne #4-1 that has it heading to sales as well, real progress on the SWD well.
CARTER REYNOLDS
Status: Producing
The Carter Reynolds continues to produce as normal, with no operational issues to report.
PRODUCTION, JULY 2026
Total oil produced: 86.18 barrels
Oil sales: 186.23 barrels
ASE 1
Status: Temporarily shut in
ASE 2 PRODUCTION, JULY 2026
Status: Producing
Total oil produced: 147.79 barrels
Oil sales: 312.89 barrels
Total gas produced: 970 mcf
Total water produced: 151.97 barrels
LOIS ANNE #1-1 PRODUCTION, JULY 2026
Status: Producing
Production from the #1-1 has been steady through July. Once the SWD is operational, we will drill out the bridge plug and re-open the Wilcox perforations, which would add a further producing interval.
Total oil produced: 68.47 barrels
Oil sales: 167.56 barrels
Total gas produced: 818 mcf
Total water produced: 150.3 barrels
LOIS ANNE #2-1 PRODUCTION, JULY 2026
Status: Producing gas, flowing
This is a genuine milestone for the partnership. The #2-1 was turned on during July and began sending gas to the sales line.
Fluid levels were reshot in the second week of July, and the bottom hole pressure readings are exactly the signature we want to see ahead of putting the well on pump.
The gas engine has been repaired, and the well is expected to be online in the next 5-10 days once the cement work is complete.
The well is scheduled to run rods and set a pump. Beyond moving fluid with an anticipated oil cut, the #2-1 has the potential to produce greater volumes of gas once it is on pump. The mains electricity remains approximately 30 to 60 days out, and the gas engine solution bridges that gap in the meantime.
Total gas produced: 620 mcf
Total water produced: nil
LOIS ANNE #3-1
Status: Drilled and awaiting completion
The #3-1 is drilled and ready to be completed. The completion is sequenced to follow the Lois #1 saltwater disposal well coming online. This is a deliberate ordering decision, as having disposal in place first protects the economics of the completion.
LOIS ANNE #4-1
Status: Shut in, being prepared to flow to sales
The new fluid level report on the #4-1, taken on 3 August, was a positive development.
FLUID LEVEL TEST RESULTS, 3 AUGUST 2026
Calculated bottom hole pressure: approximately 114 PSI
Bottom hole pressure on initial test: approximately 24 PSI
Increase since initial test: approximately 90 PSI
Venting: the well continues to vent at a decent rate
That is a substantial build in bottom hole pressure between the two tests, and combined with the continued venting, it is a clear indication that the energy within the Booch is starting to build within the wellbore.
The recommendation, and our plan: hook up the flow line, open the well up, send the gas to sales, and retest fluid levels in 2 to 4 weeks. This is the same plan we are following on the #2-1, and it is the sensible order of operations. Opening the well up and letting it produce gives us real production data to work from.
LOIS #1 SALTWATER DISPOSAL WELL
Status: Awaiting OCC approval, approval expected imminently
The surface use agreement with the landowner has been acquired. We have received correspondence from the underground injection control reviewer at the OCC and are working through it now.
The one open technical item concerns the Base of Treatable Water. The OCC's record for this well has moved from 510 feet to 724 feet, and because surface casing must be set 50 feet below that depth, the current requirement would be surface casing set and cemented from 774 feet to the surface. We have applied for a waiver citing the OCC's own Base of Treatable Water tables from 2021, which is when the well was drilled, and we expect a response within days.
If the waiver is not granted, the remedy is straightforward. We set a liner and squeeze approximately 300 feet of cement, taking approximately 1 additional day of rig time. Quotes are in hand from Oklahoma Cementing Cushing for the squeeze and Arvine for the surface casing liner. Both paths lead to the same result.
Road work to lay the right of way is scheduled to commence in the next 5-10 days, followed by rock spreading around the wellbore to improve the well pad.
DEVELOPMENT PLAN, TWO NEW DRILLING LOCATIONS SELECTED
On 20 July ASE partners met with our geologist, John Dowds, to finalise the remaining drilling locations that will complete this partnership. We are pleased to confirm that two locations have been selected, and that we have agreement on the sequence.
The #5-1. This location sits to the north of the #2-1 and has been moved further to the east, deliberately stepping away from the fault that affected earlier results in the area. Doing so gives us a much better chance of stimulating without fracturing into the fault, and it places the well in what our geologist believes is the fairway for the Calvin.
The #5-1 is a genuine multi pay opportunity. Our geologist expects the Ada, the Stray, the Calvin, the Booch, potentially the Hunton, the Woodford and the Viola. Since we are drilling to approximately 3,300 feet for the Booch and passing through the shallow sands on the way, we have elected to go approximately 500 feet deeper to evaluate the Woodford and the Viola as well. As our geologist put it, essentially every pay in this field has potential to be present in the #5-1. Surface access is straightforward, with the road simply extended off the north side of the #2-1.
The #6-1. This location sits approximately 450 feet southwest of the ASE 1, positioned between the existing wells. The primary target is the Booch, and our geologist has specifically recommended drilling the Woodford formation. The Booch and the Woodford are close enough that they can be commingled.
Both locations will require a location exception from the OCC given their proximity to the lease lines, and we have some flexibility to shift each location by 100 to 150 feet to optimise surface access without compromising the geology. Work is underway on the surface access route for the #6-1, most likely approaching from the new tank battery, which also happens to be the natural route for the flow line.
Timing, and why we are not drilling immediately. We want to be clear with investors that we will not be moving straight to the drill bit on these two locations. Our plan is to first maximise production from the wells we have already drilled, and to gather the important data those wells will give us, before we commence drilling the final two wells within the partnership.
There is a sound reason for taking that order. The next few months will change what we know about this lease considerably. The Lois #1 disposal well is close to approval, the #2-1 goes on pump, the #4-1 is opened to sales with a fluid level retest to follow, the #3-1 is completed once disposal is available. Every one of those steps adds production for the partnership, and each one also adds real information about how these zones behave.
That information feeds directly into the last two wells. The #5-1 and the #6-1 are the final locations in this partnership. Drilling them with the benefit of production history from the wells around them, rather than ahead of it, gives them the best possible chance of success.
COMING UP, AUGUST 2026
The waiver decision on the Lois #1 is expected within days, with OCC permit approval to follow imminently. The Lois Anne #2-1 comes online with the repaired gas engine once the cement work is complete. The #4-1 has its flow line hooked up and is opened to sales, with fluid levels to be retested in 2 to 4 weeks. On the final two locations, the location exception and increased density filings are being progressed so that the regulatory work is complete and ready well ahead of the time we move to drill.
As always, your monthly financial statement is available through your investor account portal.
Our next scheduled investor portal update will be released on or before September 11th, 2026.
Best regards,
THE ASE TEAM
