Dear Valued Investor Partners,
We hope this portal update finds you well.
Weekly Project Updates:
Cherokee 3-9: After overcoming some delays, we are set to perforate the Cherokee 3-9 well on Monday afternoon. Following this, preparations will be made to initiate water injection as part of our pressure maintenance strategy. We anticipate commencing water injection by the end of next week.
Cherokee 5-9: The well has removed a large proportion of the load water and between Wednesday and Thursday it produced approximately 20 barrels of oil. We have turned the well off, as we have decided to place a bridge plug into the wellbore and only produce from the skinner until the 3-9 injection is fully operational. This scope of work should take only 1 day and is booked for Tuesday afternoon. Dylan Knight in his 1st video provides more details.
Cherokee 7-9: Notably, the Cherokee 7-9 well boasts the thickest Red Fork, measuring approximately 42 feet. Perforation of this pay zone is planned, with initial production solely from the Red Fork. Completion activities for this well are estimated to commence during the week of April 22nd.
Cherokee 9-9: This week, Cherokee 9-9 was successfully drilled, intersecting all three pay zones: Red Fork, Prue, and Skinner. Of particular note is the Skinner formation, which exhibits exceptional porosity, a crucial reservoir property influencing oil and gas storage and production. Completion activities, including perforation of the Skinner formation, are scheduled to begin on Thursday-Friday of next week.
Cherokee 8-9: in the last few hours the drilling operations for Cherokee 8-9 are underway following the completion of road and drilling pad construction. Currently, drilling has reached a depth of 235 feet, making great progress at 0.43 (Min/Ft).
Phase 2 Tank Battery: Trenching for the Phase 2 tank battery is progressing well and is expected to be completed over the weekend. Barring weather disruptions, the Phase 2 tank battery is slated for full construction by the end of next week.
Strategic Outlook: Our primary objective is to achieve full production status for all Phase 2 wells in early May, and to take full advantage of the high oil prices, which are predicted to range from $80-$100 for the short to medium term.
Wishing you a wonderful weekend!
Best Regards,
The ASE Team
