Dear Valued Investor Partners,
We trust this quarterly update finds you well. Continuing on from our previous quarterly update, here is the latest position on the BCB Fund.
REVENUE INTO THE BCB FUND
During this quarter, there were multiple unexpected costs associated with the wells at the ASE Oddfellows oilfield. Because of this, no revenue was paid into the BCB Fund over this period.
The BCB Fund currently holds only a small balance. We are forecasting oil and gas revenue to be paid into the fund next month, subject to no unforeseen repairs or maintenance being required on the wells.
DISTRIBUTION APPROACH
The plan set by our CFO is to allow the BCB Fund to build to a meaningful balance before distributions are made to investors.
The reason is that the current balance is a small amount, and the transfer and banking fees would take up a disproportionate share of each payment. We do not want those fees to eat into your distributions.
To set expectations clearly, while we are forecasting oil and gas revenue to be paid into the fund next month, it will likely take a further 2-3 revenue payments into the BCB Fund before the balance is sufficient for a distribution to be made to investors.
OUR PRIORITY
We want to make it very clear that paying each and every one of the BCB Fund investors is one of our top priorities. We understand that you have been patiently waiting for a very long time, and we sincerely appreciate your patience.
GROWING PRODUCTION AND THE BCB FUND
On a positive note, there are encouraging developments underway at the ASE Oddfellows oilfield, including our new enhanced recovery injection well, which we believe will increase oil and gas production starting early next year. We are also planning to drill multiple new wells in Grant County, Oklahoma.
Under the structure of the BCB Fund, a proportion of revenue is paid into the fund. The more wells we drill, the greater our production, and the larger the amounts of revenue we can pay into the BCB Fund.
Our goal is to keep increasing the amounts we pay into the BCB Fund and to achieve consistency, so that investors receive a payment each month.
Once again thank you for your patience and understanding, and we look forward to providing further updates.
Best regards,
THE ASE TEAM
