Dear Valued Investor Partners,
We hope this update finds you well.
LOIS ANNE #1 WELL - LATEST UPDATE
October Testing Activities: Drilled and completed in September 2025, tested throughout October.
1st Wilcox Formation Test Results:
Decision: Based on current test results, the 1st Wilcox formation is deemed non-commercial at the Lois Anne #1 well location under present completion methods.
Future Optionality: Once the ASE 4 saltwater disposal well receives regulatory approval and becomes operational, the 1st Wilcox formation may be re-evaluated as a viable completion target. With disposal infrastructure in place, we would have the ability to:
The plug set over the 1st Wilcox perforations can be easily retrieved in the future if economic conditions and disposal capacity warrant re-attempting this formation. For now, we are proceeding with the higher-probability Hunton formation completion to establish commercial production from the Lois Anne #1 well.
October Production (1st Wilcox Test Period):
Next Steps - Hunton Formation Completion: Based on the non-commercial results from the 1st Wilcox, a completion procedure has been prepared to:
November Timeline: Completion rig operations to commence in mid-November.
ASE 1 WELL - SCHEDULED FOR THREE PAYZONE CO-MINGLE PRODUCTION
Production Status: Temporarily shut-in during October, awaiting scheduled workover.
Operational Update: With the future availability of the ASE 4 well as a saltwater disposal facility, the Hunton formation becomes economically viable for the ASE 1 well. The most recent test of the Hunton formation yielded a flow rate of approximately 300 barrels of fluid per day, accompanied by an oil cut.
Completion Plan: We will open up the Hunton formation and commingle with the Woodford and Booch formations. Produced water will be pumped to the ASE 4 for disposal, allowing the ASE 1 to pump profitably from all three formations.
Timeline: Operations scheduled pending ASE 4 conversion to disposal well. We currently have filed the permit for conversion to a saltwater disposal well with the Oklahoma Corporation Commission (OCC). Application No. 2601100401 has been opened by the UIC department.
October Technical Activities:
Regulatory Progress: Submitted comprehensive documentation to the Underground Injection Control (UIC) department, including wireline logs, water samples, proposed wellbore schematic, and supporting technical information for saltwater disposal permit review.
Equipment Optimization: Executed strategic pumping unit reallocation to support field development:
ASE 2 WELL - PRODUCTION OPTIMIZATION SUCCESS
Production Status: Producing with improved performance following operational adjustment.
October Production:
Operational Improvement: During October, we opened up the pressure valve on the separator, decreasing pressure from 60 PSI to approximately 40 PSI to relieve line pressure. This adjustment resulted in:
We will continue monitoring this enhanced production level throughout November.
CARTER REYNOLDS WELL
Production Status: Produced as expected throughout October.
October Production & Sales:
Operational Notes: No issues reported.
INVESTOR SUPPORT
If you have any questions about accessing your account, locating your monthly statements, or any investor-related inquiries, please contact:
Claudia Brugge Investor Relations Associate Email: claudia.v@alphasevenenergy.com
Best regards,
THE ASE TEAM
