Dear Valued Partners,

We trust this message finds you in the best of health and high spirits.

As we approach the close of this year, we are pleased to present our final update for 2023, unveiling the roadmap guiding us toward success in 2024 and beyond.

Here's a succinct breakdown of the key highlights:

Quarterly Disbursements: Unfortunately, the absence of quarterly BCB Fund disbursements is a direct result of MXP's failure to fulfill their committed scope of work, and also due to their bankruptcy.  This disruption has impacted both Seminole County and Mesa Vista wells.  ASE is still proactively taking legal measures against MXP, yet as with most legal cases, this may take an extended period to achieve our desired outcome.

Building a Strong Foundation: ASE has redirected its primary focus towards maximising value through the Cherokee project in Payne County, Oklahoma. This shift is underscored by ASE's operational control over the project, which is now classified as a development initiative, or as termed by our drilling partner, "a mining project.". Notably, the Cherokee 2-9 well is operational, generating revenue for ASE. This income is steadily accumulating, with the goal of recommencing the BCB Fund quarterly payments by the end of Q1 2024.

Drilling Towards Financial Success: Our primary strategic objective revolves around fortifying ASE's financial standing, paving the way for more substantial quarterly payments. Notably, the confirmed drilling schedule for all 5 Cherokee wells between January and March 2024 includes the commencement of drilling for the 3-9 well (injection well) by mid-January 2024. Additionally, with secured investor commitments, ASE foresees drilling 10-15 wells consecutively in 2024.

Most importantly, our collective success as a company translates into tangible financial success for each BCB investor. This steadfast commitment remains at the forefront of every individual within Alpha Seven Energy and is the cornerstone of every decision we make.

From the entire ASE team, we would like to wish everyone a Merry Christmas and here's to a prosperous 2024!

Best regards,
The ASE Team