Dear Valued Investor Partners,
We hope this portal update finds you well.
Due to cash flow constraints and the need to address remaining legal costs related to regaining control of our Seminole County project, we are not in a position to make quarterly disbursements at this time. While we understand this may be disappointing, we are excited to share some significant positive developments that will, in the short to medium term, strengthen ASE’s ability to not only resume consistent quarterly payments to the BCB Fund but also exponentially increase their size.
Seminole County Project: We have successfully regained control of this project, and our Oklahoma operating company, FP Operations LLC, is now the licensed operator on record with the Oklahoma Corporation Commission (OCC). Since reclaiming this asset, we have been working closely with our new project geologist, whose analysis has provided highly encouraging insights. He believes there is a substantial presence of Woodford shale on our lease. Based on his experience with local wells of lesser formation thickness, which have produced an average of 40 barrels of oil per day (BOPD), this news strongly reinforces our belief in multiple hydrocarbon-rich pay zones beneath our Seminole County lease. We are fully committed to maximizing the extraction of both oil and gas.
However, due to previous mismanagement of the wells by MXP, we are currently focused on restoring the drilled wells to optimal production. This process is ongoing, and we also plan to commence drilling the remaining partnership wells early next year.
Parker Fee Oilfield: We are pleased to announce the successful close on the first half of the Parker Fee oilfield asset. Since completing the transaction, we have carried out essential post-closing tasks, initiated general maintenance, and conducted fluid tests on all 15 active wells.
The second and final round of funding has now begun, and once completed, we will purchase the remaining 50% of the Parker Fee lease. Our goal is to allocate a portion of the revenue from this asset—after CAPEX, operating costs, and unpaid expenses—directly to BCB Fund LLC for future dividend distributions.
Looking ahead, we are confident that by the end of 2024, ASE will be in a much stronger financial position. With increased oil and gas production across our assets, we will be in a better position to make regular quarterly payments to the BCB Fund, and, as previously communicated, we fully intend to increase the size of each disbursement.
In the meantime, we have made other ASE projects portals available to you, such as the Cherokee project, to keep you updated on ASE’s ongoing progress. We will officially notify all BCB Fund investors via the portal once we are ready to recommence quarterly disbursements.
We sincerely thank you for your continued patience, understanding, and trust in ASE. The positive momentum building within our business will directly benefit every investor in the BCB Fund.
Best regards,
The Alpha Seven Energy Team
