We are pleased to provide a further operational update regarding ongoing activity across the ASE Lois LP, including Lois Anne 4–1, Lois Anne 2–1, and upcoming development planning for the Lois Anne 5-1 well.
Last week the Lois Anne 4–1 well was successfully drilled to target depth of approximately 4,250 feet.
Following drilling operations, the mudlog and wireline evaluation confirmed:
✓ Approximately 16 feet of continuous Booch formation (estimated 3ft more than the ASE 3 well)
✓ Approximately 20% porosity observed throughout the Booch interval
✓ On Monday the 18th of May, 14 feet was perforated across the target payzone
✓ On Tuesday afternoon, a successful frac was executed utilising approximately 1,100 barrels of fluid incorporating acid, gel and Texas Gold sand
For investors unfamiliar with porosity, approximately 20% porosity refers to the amount of available pore space (void space) within the rock matrix capable of storing hydrocarbons. Within a tight reservoir system such as the Booch formation, this is considered an encouraging reservoir characteristic.
Importantly, the Booch formation across our field continues to demonstrate characteristics of a tight, gas-driven reservoir system with minimal water production, similar to behaviour previously observed within both ASE 3 and Lois Anne 2–1.
Following stimulation operations and shut-in procedures, the well was allowed to rest before commencement of flowback and cleanup activities.
Our operations team has been actively swabbing throughout today as part of the cleanup and recovery process.
Current field observations include:
✓ Substantially stronger gas kicks and gas shows compared to Lois Anne 2–1
✓ 20% oil cut visibly present within the wellbore (during the 1st day of swabbing).
✓ Strong gas response continuing during swabbing operations
✓ Continued fluid recovery and formation cleanup underway
Importantly, our field operator has advised that the well is currently behaving similarly to Lois Anne 2–1, however with stronger gas response observed to date.
Investors may recall that Lois Anne 2–1 initially displayed limited fluid recovery before progressively building gas pressure and oil production following stimulation.
Given the gas-driven nature of this reservoir system, reservoir energy and gas movement play an important role in mobilising hydrocarbons toward the wellbore. Encouraging gas response remains an important indicator during early cleanup and stabilisation operations.
Importantly, ASE 3, located approximately 700 feet from Lois Anne 4–1 remains a valuable reference point.
ASE 3 encountered approximately 11 feet of Booch pay, with approximately 10 feet perforated, and demonstrated strong historical production characteristics, including substantial oil and gas production from the Booch interval over many years.
Following the ongoing swab operations:
✓ Continuing wellhead pressure of approximately 200 PSI
✓ Increased oil cut observed during swabbing
✓ Strong and consistent gas response maintained
✓ Reservoir energy continuing to build
Active field operations currently underway on the 2–1 include:
✓ Setting of the pumping unit
✓ Engagement of a dedicated crew to lay the flow lines
✓ Continued facility construction by our roustabout crew
The surface facility under construction will incorporate a separator system designed to separate produced water and oil, with associated gas directed down the main gas line for tie-in to the broader field gathering system.
Drawing on the experience gained from ASE 3, which responded strongly to a refracture treatment completed earlier this year and was successfully transitioned onto pump-assisted production, our operations team believes Lois Anne 2–1, and potentially the Lois Anne 4-1 will benefit from a similar transition.
Given the gas-driven nature of the Booch reservoir system and the early production behaviour now being observed on the 2–1, moving the well onto pump represents the logical next step in optimising sustained oil and gas production from this well, and most likely future wells.
In addition to current field operations, we are pleased to confirm that the team is scheduled to meet with our geologist, John Dowds, next week to review field data and discuss positioning for the next planned development well:
The objective of this review is to continue optimising field development planning through geological interpretation, reservoir analysis and strategic well placement as we progress ongoing expansion activities across the field.
As always, development planning remains subject to geological review and operational considerations.
Our field team will now pause operations for the long weekend and will return to site on Tuesday.
Further operational updates will be provided next week as additional field data becomes available and cleanup operations continue.
Current indicators continue to support our confidence in the long-term development strategy of the ASE Oddfellows oilfield.
Best regards,
