Dear Valued Investor Partners,
We hope this update finds you well.
As part of your direct investment, the ASE Lois LP 10 well portfolio includes the Carter Reynolds well in Texas and nine additional wells (3 drilled and 6 to be drilled) located at the ASE Oddfellows oilfield in Oklahoma. Approximately 10% of the overall investment is allocated to the 4 drilled wells, with the remaining 90% spread across the new wells.
PORTFOLIO PERFORMANCE SUMMARY
Carter Reynolds Well (Texas)
The well was offline for 2 days in May due to scheduled maintenance activities, including pulling rods and tubing, steam cleaning, hole cleanout, and reinstallation before returning to pump operations.
May Production:
ASE 1 Well - Currently Offline
The ASE 1 well was offline throughout May, so no production to report. Early next week, we plan to install a compressor unit at the wellhead, to create a vacuum and relieve gas pressure from the wellbore. This process has been successfully implemented at our Parker Fee oilfield with positive results.
ASE 2 Well - Online and Producing
We are pleased to report that the scope of work has been completed. After being offline for over 3 weeks, the well has returned to production.
Recent Equipment Upgrades: The original pumping unit experienced mechanical failure due to worn bearings and gearbox components. We replaced it with a new unit featuring an 86-inch stroke length, which is better suited for this well's production profile. The new unit will reduce wear on downhole equipment while maintaining current production rates.
Tank Battery Improvements: We have upgraded the separation system by replacing the 3-phase knockout with a 2-phase knockout and installing a 4x20' gun barrel. This configuration prevents cross-contamination between oil and water tanks by allowing gas to separate into the sales line first, then providing extended settling time for proper oil-water displacement before reaching the storage tanks.
May Production Performance:
Future Production Strategy: Analysis indicates strong potential for fracturing the Woodford Shale formation, which would deliver significant increases in daily production volumes.
DEVELOPMENT PIPELINE
Lois 1 Well - Strategic Prioritization
Our original plans have been adjusted based on recent strategic analysis. Following in-depth conversations with our key team members, we have decided to prioritize the drilling of the Lois Anne 1 well first. This approach will provide additional data that could be invaluable when completing the Lois 1 well.
From a financial standpoint, the Lois Anne 1 well's location and access to up to 5 individual hydrocarbon zones make it an attractive 1st target. By fast-tracking the drilling and completion of this well, we believe we can provide increased value and monthly income to investors due to the increased ownership percentage in each well and its close proximity to the ASE 3, which is our best-performing well.
Lois Anne 1-6 Wells - Pre-Drilling Activities
As shown in the video in our May portal, the Lois Anne 1 well location has been officially staked. In the coming weeks, we will commence the permitting process in preparation for our pre-drilling activities.
We are excited to advance this well and, with our new strategic direction, we are laser-focused on fast-tracking all pre-drilling activities. Please anticipate more detailed information in next month's portal, with increased update frequency once drilling commences.
ALPHA SEVEN ENERGY INVESTMENT PORTAL
Last week, we initiated our phased rollout of the new investment portal to a small number of ASE investors. This approach allows us to identify and resolve any technical issues before the full-scale launch to all investors.
UPCOMING COMMUNICATIONS
Our next investor portal update will be released on Thursday, July 10th (US time).
Best regards,
THE ASE TEAM
