Dear Valued Investor Partners,
We hope this update finds you well.
Please find below your August 2026 operational update for the ASE Lois LP.
The partnership holds ownership in the Carter Reynolds, the ASE 1, the ASE 2, and the Lois Anne #1-1, #2-1, #3-1 and #4-1, together with the Lois Anne #5-1 and #6-1 still to be drilled, and a 20% ownership interest in the Lois #1 saltwater disposal well.
In August, we delivered three milestones for the partnership. The Lois Anne #2-1 continues to sell gas and is now on pump, moving oil to the tanks. The Lois Anne #4-1 has been connected to the sales line and is selling gas, with oil anticipated to follow in the same way it did on the Lois Anne #2-1, as producing the gas draws down pressure and brings the oil behind it. The Lois #1 saltwater disposal well has received in principle full approval from the Oklahoma Corporation Commission, with only the well transfer paperwork remaining.
CARTER REYNOLDS
Status: Producing
The Carter Reynolds continues to produce as normal, with no operational issues to report.
ASE 1
Status: Temporarily shut in
The ASE 1 remained temporarily shut in through August, with the workover AFE prepared and ready for approval. The opportunity here is to commingle up to three pay zones once water disposal capacity is available through the Lois #1 (SWD).
ASE 2
Status: Producing
A clean month with very few issues. The well ran smoothly throughout, producing both oil and a solid volume of gas.
LOIS ANNE #1-1
Status: Producing
Production from the #1-1 has been steady through August, contributing both oil and a healthy gas volume.
Once the SWD is operational, we plan to drill out the bridge plug and re-open the Wilcox perforations, which we anticipate will substantially increase hydrocarbon production.
LOIS ANNE #2-1
Status: On pump, first oil to tank
This is the milestone we have been working toward on the #2-1. During August the rods and rod pump were run and the gas engine was installed, and the well was turned on at the end of the month. While the engine and pump were being installed, the well continued to sell gas.
Since the well went on pump, the early signs have been encouraging. Pressures initially spiked to approximately 500 psi and have since settled in the 220 to 280 psi range, and the well has good pump action. Oil has now made its way into the stock tank. That is a meaningful step, because fluid from this well passes through two vessels, the gas separator and the free water knockout, before reaching the tank, so oil in the tank confirms the well is moving fluid all the way through the system.
LOIS ANNE #3-1
Status: Drilled and awaiting completion
The #3-1 is drilled and ready to be completed. The completion approval is prepared and held ready, and the completion is sequenced to follow the Lois #1 saltwater disposal well coming online, as having disposal capacity in place first protects the economics of the completion.
LOIS ANNE #4-1
Status: Connected to the sales line, selling gas
The #4-1 has moved from evaluation into production of gas. Fluid levels shot in the first week of August showed building bottom hole pressure and building gas volumes, and gas was noted when the tubing was opened to air. On the strength of that data, the flow line was installed and the gas separator and free water knockout were plumbed in at the tank battery.
The well is now connected and sending gas down the sales line. The well will be produced on the flow line for a period before fluid levels are reshot, which is the same approach that was taken on the #2-1. The intention is that producing the gas draws down pressure and encourages the oil to follow, exactly as it did on the #2-1.
LOIS #1 SALTWATER DISPOSAL WELL
Status: In principle full approval received, well transfer paperwork being finalised by the OCC
Last month we explained that the Base of Treatable Water on record at the OCC for this well had moved and that a waiver had been applied for. That matter has been resolved. FP Operations proposed a cement circulation procedure that accounts for the Base of Treatable Water level, and the OCC has reviewed that procedure and verbally approved it.
All required documents have been furnished, the well has been through final review at the Underground Injection Control department, and full approval has been received in principle. The OCC is finalising the well transfer paperwork, which is the last administrative item before the permit is issued. Preparations are complete so that work can commence as soon as the permit is issued.
The Lois #1 unlocks the completion of the #3-1, the Wilcox in the #1-1, the return of the ASE 1 to production, and the economics of the Hunton and, most importantly, the Wilcox formation across the entire ASE Oddfellows oilfield.
DEVELOPMENT PLAN, LOIS ANNE #5-1 AND #6-1
The #5-1 and the #6-1 are the two wells that will complete the partnership. Our approach is to first maximise production from the wells already drilled and gather the data they are providing before commencing the final two wells.
The reason is straightforward. The wells drilled to date have encountered additional zones of oil, and formations with different characteristics have added complexity to the completions. The data now coming from the #2-1 and the #4-1, and from the #3-1 once it is completed, will provide invaluable additional insight to our geologist and engineers to confirm the exact positioning of the wells, so as to encounter the maximum thickness of the Booch formation while also targeting the multiple other pay zones within the oilfield. Focusing on current production first also strengthens the partnership's cash flow while that decision is made.
When drilling commences, the agreed sequence is the #5-1 first, followed by the #6-1. Our preferred contractors, Dan D for the drilling operations and Levi Campbell for mud logging, both of whom have delivered consistent, high quality work for us previously, remain in place.
COMING UP, SEPTEMBER 2026
The #2-1 will be left on pump to load up, with a fluid level shot to confirm the fluid column. The #4-1 will continue selling gas on the flow line ahead of fluid levels being reshot. The Lois #1 permit is awaiting the completion of the OCC's administrative paperwork, with preparations complete so that the work proceeds as soon as the permit is issued. The completion of the #3-1 and the Wilcox work on the #1-1 both follow the Lois #1.
Our Senior Partner, Grant McLoughlin, is booked to return to the US on 6 October for a two week trip. During that time we are confident that we will have substantially increased production from the oilfield and have commenced the Lois #1 saltwater disposal well conversion process.
As always, your monthly financial statement is available through your investor account portal.
Our next scheduled investor portal update will be released on October 12th, 2026.
Best regards,
THE ASE TEAM
