We hope this update finds you well.
In this portal release we are pleased to share a significant development for the ASE Lois LP. We are fast-tracking our waterflood strategy, a step we believe has the potential to substantially increase the primary production and unlock the secondary oil reserves across the ASE Oddfellows oilfield.
The wells already drilled within the ASE Lois LP contain multiple formations that are yet to be opened, in particular the Wilcox zone. The Wilcox carries a high ratio of water to oil, which is why a cost-effective way of handling the water is essential.
Using the Lois Anne #3-1 as an example, we would look to run a submersible pump into the wellbore, with the following anticipated results:
• Estimated fluid moved: approximately 1,000 barrels per day
• Wilcox oil cut: between 8.5% and 15%
• Estimated oil production: between 85 and up to 150 barrels per day
As communicated in previous portals, our intention was to convert the Lois #1 well into an SWD (saltwater disposal well). After receiving pre-approval from the OCC, we commenced negotiations with the surface owner on our southern lease, and to date we have not been able to reach commercial terms.
Rather than wait, we have brought forward our waterflood strategy. This was always part of our plan once the six Lois Anne wells were drilled, yet it was not expected to begin for at least another 12 months.
A waterflood does more than dispose of water; it puts the water to work. Water is injected into the formation through an enhanced recovery injection well (ERI well), pushing oil and gas towards the surrounding wells. It is a proven method of extracting not only the primary oil reserves, but also the secondary reserves.
The Booch formation has no water, which makes it the perfect candidate for a waterflood. We would also potentially look to waterflood the Hunton formation.
Our engineers are currently preparing an engineering report on the waterflood. At this stage, the ASE 3 is the most probable candidate for the ERI well, for two reasons:
1. Central location: the ASE 3 sits centrally on the lease, so it would highest probably of pushing the most dhydrocarbons to the surrounding wellbores, most of which are held within the ASE Lois LP.
2. Production history: generally speaking, the well that has produced the most oil and gas is selected for injection, and to date, the ASE 3 is the best performing well.
Our plan had been to keep the ASE 3 producing until its output declined to lower levels. However, we are putting our investors first, and this decision is made for the betterment of all investors in the ASE Lois LP.
1. Engineering report: the engineers’ report will confirm the exact location of the injection well.
2. Approvals: once the report is in place, we will commence all required steps for approval.
3. Conversion: on approval, the selected well will be converted and the waterflood brought online.
We are excited about what the waterflood can deliver for the ASE Lois LP, and we see this as a very positive step forward. We understand you may have some questions, yet this is all the information we have to date.
Thank you in advance for your patience. The next update will be released on November 12th, 2026, and we are confident it will include more detailed information on the waterflood and the plans we will implement.
Best regards,
