11th February 2026, Update

Dear Valued Investor Partners,

We hope this update finds you well.

In this portal, we will provide you with the latest developments regarding your investment in Phase 2 of the Cherokee project.

‍

CURRENT OPERATIONAL STATUS

January 2026 Production Performance:

• Oil Production: 61.75 barrels
• Oil Sales: 158.65 barrels (including previous inventory)

Operational Challenges

• Well 7-9: The wrist pin on the pumping unit required replacement. This repair was successfully completed, and the well has been returned to production.
• Well 3-9: The well experienced tubing failures within a few weeks of each other. T&L Workover Services is scheduled to pull tubing on both wells for inspection and replacement.  The workover is scheduled for mid-week of February 16th.
• Well 8-9 (Water Supply Well): This well has developed a tubing leak requiring joint replacement. However, current economics do not support the workover investment at this time, given commodity pricing.

Economic Considerations & Strategic Approach

Current oil pricing continues to influence our timing and scope of major interventions across Cherokee Phase 2. We are carefully monitoring commodity pricing trends and will time major operational expenditures to coincide with more favorable market conditions.

Enhanced Water Injection Strategy

We continue making progress on our innovative water injection approach for the Skinner formation. Discussions with the adjoining operator regarding the connecting pipeline project remain ongoing. This infrastructure would substantially increase water injection volumes and potentially enhance production rates across the field.

‍

UPCOMING COMMUNICATIONS

Our next investor portal update will be released on March 12th, 2026 (US time).

‍

Best regards,

THE ASE TEAM