* INVESTOR PORTFOLIO PLATFORM VIDEOS NOW ATTACHED *
Dear Valued BCB Fund Shareholders,
We hope this update finds you well.
In this quarterly BCB Fund update, we are pleased to provide positive news and significant progress on multiple wells within the ASE Oddfellows oilfield.
As outlined in previous portal updates, we have implemented a new strategic BCB Framework:
Monthly Income Model: Moving forward, for each new well drilled, we will allocate a portion of the oil and gas net revenue to the BCB Fund, generating monthly income rather than quarterly payments.
The Lois Anne wells at our ASE Oddfellows oilfield in Oklahoma will be the first wells in which a portion of net revenue will be utilized to fund the monthly BCB payments to investors. Because of this, we thought investors would appreciate an update on the oilfield development.
Current Production Status: The Lois Anne #1-1 well has started producing 8-10 barrels of oil per day. Based on historical Hunton formation performance, production typically increases significantly as water production decreases and gas-oil ratios stabilize. The strong gas presence and steady oil production are positive early indicators of the well's long-term potential. Currently, we are constructing the tank battery facility that processes and stores the oil and gas in preparation for sales.
Strategic Value: Once the ASE 4 disposal well receives regulatory approval, we will have the capability to co-mingle multiple formations (such as the Wilcox and Hunton) within individual wellbores, unlocking additional productive zones and maximizing hydrocarbon recovery across the field.
Drilling Milestone Achieved: Total depth of 4,079 feet was reached on December 15, 2024. The well was drilled efficiently with excellent wellbore stability, drilling approximately 3 feet into the target Viola formation.
Exceptional Results - 7 Confirmed Hydrocarbon Pay Zones: We are extremely proud to report that the Lois Anne #2-1 well has exceeded expectations, encountering seven distinct hydrocarbon-rich pay zones.
Permit Status: The drilling permit for the Lois Anne #3-1 well has been approved by the Oklahoma Corporation Commission (OCC).
Target Formation: Wilcox formation
Anticipated Spud: Tuesday, December 23, 2024 (adjusted from Saturday to allow the drilling crew to spend Christmas with their families)
Strategic Value: The Lois Anne #3-1 well sits across a significant fault structure from the #1-1 and #2-1 wells, allowing direct comparison of formation characteristics and optimal zone selection for future development across the ASE Oddfellows Oilfield.
We understand investors may have questions regarding when BCB Fund payments will recommence. Once the Lois Anne wells are brought into production and hydrocarbons are being sold at stable rates, we will be able to provide a confirmed timeline for the commencement of monthly distributions, which will be posted via the portal.
As communicated in our email sent on December 3rd, we are in the process of migrating all BCB Fund shareholders to our new investor portfolio (My Investment Account) platform. We are pleased to report that many investors have already completed the process of setting up their accounts.
To assist those who have not yet completed the migration, we have created 3 short instructional videos covering:
These videos are designed to make the transition as seamless as possible. If you have not yet set up your account or need assistance navigating the new platform, please refer to these resources or contact our investor relations team.
If you experience any technical issues during the process, please email claudia.v@alphasevenenergy.com and copy in our CFO (Peter Fagan) peter.f@alphasevenenergy.com. Due to expected query volume, and the Christmas break, we appreciate your patience while we respond.
Once again, we would like to express our sincere appreciation for your continued patience. We are excited to share further updates in our next portal update planned for early in the new year, and as we get closer to recommencing the BCB Fund disbursements, which will be on a monthly basis.
From the whole team would like to wish everyone a Merry Christmas and have a wonderful holiday season!
Best regards,
THE ASE TEAM
