Dear Valued Investor Partners,
We hope this update finds you well. Below is a summary of recent developments and our ongoing strategies to enhance production and long-term value.
November Oil Sales & Lease Operating Expenses:
- A full truckload of oil was sold in November.
- The settlement statement reflects deductions for:
- Lease Operating Expenses (LOE) – ongoing operational costs.
- A previous outstanding bill from October – impacting net revenue distribution.
Pressure Maintenance & Strategy Adjustment:
- We have been implementing a waterflood (pressure maintenance) strategy on Phase 2 by injecting water into the Red Fork formation.
- This was originally expected to boost Red Fork production and, over time, positively impact the 2-9 Cherokee (Phase 1) well.
Strategic Adjustments After Geological Analysis:
- The Red Fork formation is currently showing an oil cut of approximately 7–8%, whereas its typical oil-to-water ratio is around 20%.
- After consulting with our geologist and operations team, we have shifted our approach and have now commenced dewatering the Red Fork to:
- Increase the oil cut.
- Potentially create long-term positive effects on the Cherokee 2-9 well.
Next Steps & Investment Outlook:
- We remain committed to identifying and implementing strategies to enhance production and maximize the value of your investment.
- Our team is confident that these efforts will not only increase production for Cherokee Phase 2 but could also have a positive impact on Cherokee Phase 1.
Please note that portal updates will be posted at the end of the 1st week of each month.
We appreciate your ongoing trust and support as we continue working towards optimizing production and long-term returns.
Best regards,
The ASE Team
