Valued Partners,
We would like to provide you with an update on the Cherokee Phase 1 drilling project. As you may be aware, there have been some delays in commencing the drilling of the well. Our drilling partner, who will be drilling the Phase 1 well and all future wells, has been drilling other wells in and around the project location. They have experienced delays that have caused a knock-on effect to spudding the Cherokee #1 well.
However, we would like to assure you that the additional time has allowed the drilling team to gather invaluable data that will greatly assist in maximizing oil and gas production from the Cherokee #1 well and future ASE wells. Our drilling partner has also been conducting tests on other surrounding wells and perfecting the exact completion process, which will streamline the drilling and completion of all future wells. We are pleased to inform you that the Cherokee #1 well is next in the queue to be drilled.
As per the PPM, only 50% working interest (WI) was released in the Cherokee #1 well. As of May 9th, a maximum of 25% WI is being released in the Cherokee Phase 1 as part of our Dual Asset Offering. Please note that there is a total of 100% WI in the Cherokee #1 well and the WI being released as part of the Dual Asset Offering will not dilute your current investment.
To provide all current investors with the greatest value possible, we are extending the opportunity to either:
Keep your current investment allocation and opt-out of the Dual Asset Offering.
Increase your current ownership in the Cherokee #1 well by purchasing additional units (or fractional units) within the Dual Asset Offering and receive a proportion of the Mesa Vista farmout (net sale).Retain your current ownership in the Cherokee #1 well and secure your share (1 unit = 1%) of the Mesa Vista farmout in ratio to your current interest in ASE Cherokee Phase 1 LP by increasing your current capital invested.
The Dual Asset Offering (for new investors) per 1 unit of $200K incorporates the standard $140K for 10% WI plus $60K for 1% of the net revenue from the Mesa Vista farmout. All current ASE Cherokee Phase 1 investors who wish to gain additional diversification and be part of our 3-2 strategy will not be charged the standard one-off management fee of 5%.
We would like to inform you that the Dual Asset Offering is due to go live tomorrow, and we have already received multiple expressions of interest from other ASE investors. All Cherokee Phase 1 investors have the first right of acceptance until COB this Friday.
To secure your investment or find out more, please feel free to contact Dylan Knight or McLoughlin.
