Dear Valued Partners,
We are thrilled to share the latest developments from our recent Cherokee site inspection, conducted by our Co-Founders, Chris Hemsworth and Dylan Knight. Their visit to Payne County provided a comprehensive understanding of the Cherokee 2-9 well and a glimpse into the ambitious Cherokee Phase 2 development plan. Dylan, with his keen eye and expert commentary, captured raw and up-close video footage, providing valuable insights into the project's progress. Chris was piloting the drone, and did a great job, battling against the strong headwinds in order to capture a birdseye view of the Cherokee 2-9 and the surrounding area. Here is a succinct summary of the noteworthy events since our last portal update:
Performance Optimization:
After adjusting the pumpjack to 8 strokes per minute, we observed a substantial 40% increase in the oil cut. Further adjustments to 9 strokes per minute caused oil cut ratios to spike, with 1 sample taken on Tuesday reaching an impressive 90%.
Pressure Surge and Increased Production:
Around 2:00 PM on Wednesday, a significant three-fold increase in casing pressure was noted by our field superintendent. Subsequently, the well began flowing up both the tubing and casing, resulting in a notable rise in daily fluid production. In just a 2-hour period, approximately 15 barrels of fluid were measured in the frac tanks, highlighting the accelerated production.
Game-Changing Flow Rates:
At 4:00 PM on Wednesday, we received incredible news from our on-site team—the well had started flowing "Big Time!!!" with an impressive 100 psi from the casing, yielding pure oil. The oil flow was also evident up the tubing. This development marks a pivotal moment for Phase 1 investor partners and holds immense promise for the entire ASE Cherokee oilfield development.
This exciting data sets the stage for Phase 2 of our Cherokee project, particularly the implementation of the proposed waterflood technique. Past success with similar waterflood initiatives has doubled the Estimated Ultimate Recovery (EUR) for oil and gas in certain cases, adding a new dimension to our enthusiasm for the future.
We extend our gratitude for your continued trust and partnership. Together, we look forward to an even brighter journey ahead.
Warmest regards,
The Alpha Seven Energy Team
