Dear Valued Investor Partners,
We hope this update finds you well.
April and the first week of May have been a period of major activity across the ASE Lois LP portfolio, with significant progress on two critical fronts: the Booch formation perforation in the Lois Anne #2-1, and the spudding of the new Lois Anne #4-1 well.
LOIS ANNE #2-1 WELL — BOOCH FORMATION PERFORATION (MAJOR UPDATE)
This week we made an executive decision to perforate the Booch formation within the Lois Anne #2-1.
This decision followed our open hole completion attempt of the Viola formation, which delivered a low oil cut after conducting an acid frac stimulation. After consultation with our geologist John Dowds, ASE contract operators, and our reservoir engineering team, the unanimous recommendation was to move uphole to target the Booch formation, which has always been our primary formation.
A Cast Iron Bridge Plug was set at 3,806' to isolate the Viola, and 6 feet of the Booch formation was perforated between 3,306' and 3,312' at 4 shots per foot.
Senior partners Dylan Knight and Grant McLoughlin spent three days on location overseeing operations and capturing video footage. Two new videos are included in this portal release.
Acid Stimulation & Initial Response
After perforating the formation, we pumped 24 barrels of 15% NeFe acid with 50 ball sealers, flushed with 72 barrels of KCL water to clean out the formation, then commenced swabbing operations.
The well was on vacuum after the acid job, and with each swab run we observed increasing gas blows and gas coming out of the bleeder valve. These are both very strong early indicators, because the Booch is a gas-driven tight sand formation with very little water content. The increasing gas response with each swab run is exactly what we want to see.
Latest Update — Fluid Entry and Oil Cut Confirmed
Following the senior partners' return to Dallas on Thursday afternoon, at approximately 5:15 PM Central Time, our on-site superintendent Toby reported that some fluid entry had commenced and an increase in oil cut was being observed.
On Friday the well showed 90 pounds of pressure on the tubing with continued strong gas blow, a significant positive development that confirms the formation is opening up and contributing both gas and oil.
Next Step — Hydraulic Frac Booked For Monday
The Booch is a tight sand formation, and approximately 80% of all wells producing from this formation require a frac to fully open up the production pathways. This is consistent with the approach taken on our ASE #3 well in the same field, which has now had two frac stimulations during its sixth year of operation and continues to deliver strong production.
Our reservoir engineering team and geologist have designed the hydraulic fracturing (frac) program for the Lois Anne #2-1 Booch formation, and it is scheduled for Monday.
LOIS ANNE #4-1 WELL — DRILLING SPUD (MAJOR MILESTONE)
We are pleased to confirm that the Lois Anne #4-1 has officially spudded, marking the next major drilling milestone in the ASE Lois LP development program.
Drilling Operations Timeline:
Latest Drilling Status
As of 5:00 PM Central Time today, the Lois Anne #4-1 is drilling at approximately 3,300' depth, the anticipated top of the Booch formation, with a target total depth of 4,300'.
A reminder of why the Booch is our primary target zone: it produces high quantities of oil and gas, with almost zero water. As a reference point, the ASE #3 averages just 0.06 barrels of water per day. This means that even while the disposal infrastructure is being progressed, we have the potential for four of the six new ASE Lois LP wells (the #2-1, #4-1, #5-1, and #6-1) to come into production from the Booch without requiring the disposal system to be fully online first.
TENTATIVE FORWARD TIMELINE — LOIS ANNE #2-1 & #4-1 WELLS (Subject to change based on operational conditions)
The following operational schedule has been provisionally agreed with our contract operator and service companies for the week ahead:
This represents an aggressive but realistic schedule based on the resources currently mobilised on location.
As always, your monthly financial statement is available through your investor account portal.
Our next scheduled investor portal update will be released on or before June 12th, 2026, with milestone updates issued in between as activity progresses.
Best regards,
THE ASE TEAM
