Dear Valued Investor Partners,
We hope this update finds you in good health.
Exciting developments are underway as we leverage the remarkable well log results of the Cherokee 3–9 and 5–9 wells. In light of their impressive hydrocarbon shows, we have made the strategic decision to reposition the remaining three wells in Phase 2. This repositioning aims to greatly increase the probability of tapping into the Red Fork, Prue, and Skinner formations, targeting the thickest sections of these hydrocarbon-rich pay zones.
Anticipate significant progress in the coming weeks. We expect to receive new permits for these wells imminently, allowing us to resume drilling operations next week. Weather permitting our plan is to drill the last remaining Phase 2 wells consecutively, optimizing efficiency and resource utilization.
In the immediate term, we are focused on completing the 5–9 well while simultaneously constructing roads for the remaining Phase 2 wells. This week, we are executing key operations on the Red Fork pay zone, including perforation, acidization, and setting the stage for production. Notably, Dylan Knight will be onsite for two days (Wednesday & Thursday) to capture these action and activities.
Looking ahead, the week beginning the 18th of March will see the completion of the Skinner formation, with both pay zones poised to enter production concurrently. It is important to mention that the perforation of the Prue Formation will be deferred until all other wells are drilled and the injection well is fully operational. This strategic sequencing accounts for the Prue formation's unique characteristics, which include not only hydrocarbons but also significant water content—ideal for our pressure maintenance program due to similar PH values as the Red Fork.
Grant McLoughlin will be joining our team from Australia this Thursday, followed by Peter Fagan (CFO) on March 25th. Their presence underscores the significant activity unfolding on location as Phase 2 progresses towards its production phase.
Our onsite team has already initiated improvements to the 3-9 and 5-9 roads, in addition to commencing construction of a joint facility housing water tanks, tank battery for oil storage, and an oversized separator.
There will be more updates to follow by the end of the week.
Best Regards,
The ASE Team
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