Dear Valued Investor Partners,
We trust this message finds you in excellent health and high spirits.
We are pleased to share the latest developments from our Cherokee Phase 2 operations. Despite some setbacks caused by inclement weather, including temperatures as low as -17°C, we are delighted to announce that phase 2 operations officially kicked off over the weekend of January 20th. The construction of the 3–9 well road is well underway, and weather permitting, drilling is set to commence next week.
Co-founder Dylan Knight will personally oversee the entire operation during his visit to Payne County, with the drilling expected to take 7 to 10 days (per well). Dylan will diligently capture every aspect of the process, and we are committed to providing regular updates through our investor portal. This initiative is especially significant for our new investors, offering a firsthand experience of the entire development process, from road/pad construction, drilling, and completion to production.
Our strategic plan involves consecutively drilling all 5 phase 2 wells, one after the other, within an estimated timeframe of 45-55 days (weather permitting). The initial focus will be on the 3–9 well, designated as the injection well, followed by the drilling of other phase 2 oil and gas wells while simultaneously pumping water into the injection well.
Our innovative FastTrack strategy aims for the simultaneous extraction of primary and secondary reserves. By drilling the injection well first, we aim to optimize total hydrocarbon recovery. We have extensively researched neighbouring leases/units that successfully implemented a pressure maintenance/water flood strategy, resulting in substantial hydrocarbon recovery. Alpha Seven Energy's approach sets us apart by targeting both primary and secondary reserves simultaneously.
To further enhance oil and gas recovery, we plan to use specialized natural soap. Additionally, a red dye mixed with the water will indicate when each well has positively responded to the pressure maintenance/water flood strategy.
Our comprehensive research indicates the potential to recover up to 80% of total hydrocarbons in the first 10 years, with the remaining (up to) 20% expected in the subsequent 8 to 10 years.
Please expect to receive an increased quantity of portal updates in the weeks ahead, providing you with the latest, real-time information, videos, photos, and reports that will comprehensively capture each milestone achieved.
Best Regards,
The Entire Alpha Seven Energy Team
