6th January 2026, Update

Dear Valued Investor Partners,

We hope you all had a wonderful festive season, and from the entire ASE team, we would like to wish you and your family a very Happy New Year!

Here is the latest comprehensive update on the ASE Lois LP, specifically regarding the successful completion of drilling operations on the Lois Anne #3-1 well.

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LOIS ANNE #3-1 WELL - DRILLING OPERATIONS COMPLETE

Total Depth Reached: 4,210 feet @ 20:00 (December 28, 2025)

The Lois Anne #3-1 well has successfully reached total depth, completing drilling operations ahead of schedule. The well was drilled efficiently with excellent wellbore stability and minimal deviation throughout the process. Following total depth, the drilling team executed a comprehensive 12-hour circulation program to condition the wellbore and prepare for wireline logging operations.

Geological Findings - John Dowds

Wireline logging operations were completed by Allied Wireline on December 29, 2025. Geologist John Dowds is currently conducting detailed analysis of the wireline logs and formation samples. These are preliminary observations based on initial field analysis; John will follow up with a comprehensive geological report including detailed technical analysis and cross-sectional work integrating the three new ASE Lois LP wells (Lois Anne #1-1, #2-1, #3-1).

Preliminary 3-1 Well Formation Analysis

1ST WILCOX:

• Firm samples with hydrocarbon shows present
• Good microlog permeability characteristics
• Wireline logs indicate favorable formation properties

VIOLA FORMATION:

• Formation characteristics closely match the Lois Anne #2-1 well
• Preliminary analysis suggests consistent reservoir quality across the field

HUNTON FORMATION

• The upper six feet of the Hunton shows excellent reservoir characteristics
• Strong development potential identified in this pay zone

BOOCH FORMATION:

• Formation demonstrates excellent characteristics as anticipated
• Consistent with productive Booch intervals encountered in nearby ASE wells

CALVIN FORMATION:

• Target zone currently being evaluated by John Dowds
• Comprehensive analysis results pending – eagerly anticipating findings based on the exciting discovery of the Calvin formation in the #2-1 well

ADA & 1150 STRAY FORMATIONS:

• We have taken some samples (cuttings) to the laboratory, and are waiting for the results.

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Next Steps - Geological Analysis & Completion Planning

Immediate:

• Awaiting the final comprehensive geological evaluation report from John Dowds
• Integration of wireline log data with mud log observations
• Cross-sectional analysis to map fault structures and formation continuity
• Completion procedure design underway, pending final formation analysis

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LOIS ANNE #2-1 WELL - COMPLETION STRATEGY DEVELOPMENT

Geological Cross-Section Analysis

Geologist John Dowds is completing a detailed cross-sectional analysis to map the fault structure identified between the Lois Anne #1-1 and #2-1 wells. This work is critical to understanding how the fault may have influenced the hydraulic fracturing treatment executed on the #1-1 well and will guide optimal completion strategies for both existing and future wells.

Key Investigation Areas:

• Evaluating whether fracture propagation followed the fault plane upward during stimulation
• Mapping fault geometry to optimize future well placement and completion design

Completion Readiness:

• Completion procedure finalized and ready for execution
• Awaiting rig availability following completion of Lois Anne #1-1 workover operations

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LOIS ANNE #1-1 WELL - PRODUCTION OPTIMIZATION STRATEGY

Current Production Status

• Well currently producing at stable rates
• Two truckloads of oil were sold in December
• Observed approximately a 50% reduction in fluid entry following initial completion operations
• Analyzing potential debris accumulation that may be restricting fluid entry. It is highly possible that the frac traveled up the fault, and we may just be dealing with some debris that needs to be cleaned out, with the intention of substantially increasing hydrocarbon production

Proposed Workover & Enhancement Program

A comprehensive workover proposal is being developed to optimize production through targeted acid stimulation treatment. This treatment is designed to address the reduced fluid entry that has been observed following the initial completion operations.

Primary Workover Objectives:

• Clear potential blockages outside the perforations caused by post-frac debris accumulation
• Restore fluid entry efficiency to pre-completion levels or higher
• Optimize hydraulic communication between the reservoir and the wellbore

Alternative Development Strategy (If Required):

If the initial acidizing treatment does not achieve the desired boost in production, a secondary strategy has been developed. This approach would involve reopening the 1st Wilcox formation and establishing commingled production with the existing Hunton pay zone.

Operational Timing & Sequencing

Acidizing treatment is scheduled as a priority once a workover rig becomes available

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INFRASTRUCTURE & FACILITIES DEVELOPMENT

ASE Lois LP Tank Battery Construction

• Construction crews mobilized to the oilfield and are actively working
• Tank battery installation progressing on schedule
• Foundation work completed, equipment installation underway
• Expected completion within the coming weeks to support multi-well production operations

Strategic Significance:

The dedicated tank battery will provide essential production infrastructure to handle oil, natural gas and water from multiple wells simultaneously, enabling efficient operations as the #2-1 and #3-1 wells are brought online, and the remaining 3 wells within the ASE Lois LP are drilled.

ASE #4 Disposal Well Conversion

• Disposal well permit application under final regulatory review
• Permit approval anticipated by the end of this month
• Conversion operations scheduled to commence within 3-4 weeks of permit approval

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STRATEGIC PLANNING & FIELD INTEGRATION

Comprehensive Field Analysis & Development Planning

Upon completion of John Dowd's comprehensive geological analysis of the Lois Anne #3-1 well, we will integrate wireline data, mud logs, and formation samples from all three Lois Anne wells (#1-1, #2-1, and #3-1) to create an integrated subsurface model of the oilfield.

Integrated Analysis Deliverables:

• Updated subsurface geological mapping incorporating fault structures
• Comprehensive formation evaluation across all productive zones (Ada, 1150 Stray, Booch, Calvin, Viola, Hunton, 1st Wilcox, Woodford)
• Optimized completion designs for the Lois Anne #2-1 and #3-1 wells
• Strategic recommendations for future drilling locations, Lois Anne wells #4-1 through #6-1
• Zone-by-zone development priorities based on reservoir quality and structural position

Operational Convergence - Next 60-90 Days

Multiple critical workstreams are converging over the next two to three months, representing a pivotal period for the ASE Lois LP:

• Geological analysis and integrated field mapping completion
• Tank battery commissioning and production
• ASE #4 disposal well conversion and operational readiness
• Completion operations for Lois Anne #2-1 and #3-1 wells
• Production optimization workover for Lois Anne #1-1
• Final engineering, permitting, and drilling of the remaining ASE Lois LP wells (#4-1, #5-1, #6-1)

This coordinated approach ensures that infrastructure, geological understanding, and operational capabilities align to maximize project value and production efficiency. The comprehensive data set from three wells across the fault structure will provide the technical foundation for confident decision-making on the remaining well to be drilled.

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SUMMARY

The ASE Lois LP development program continues advancing with strong technical results, efficient operations, and strategic integration of infrastructure investments. The successful drilling of the Lois Anne #1-1, #2-1 and #3-1 wells provides the critical data points to assist in creating a comprehensive subsurface model of the oilfield.

We will continue to provide regular portal updates to keep you fully informed as we achieve more major milestones.

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Best regards,

THE ASE TEAM