Dear Valued Investor Partners,
We trust this message finds you well and enjoying your weekend.
In this portal, we will provide a quick summary of the scope of work completed over the past few weeks and outline our scheduled activities for the upcoming week and beyond.
Cherokee 5-9 Well: Substantial progress has been achieved with the Cherokee 5-9 well. Perforation, acidization, and fracking operations have been successfully completed in both the Red Fork and Skinner formations. The tubing and rods have been installed, in preparation for our new 6-cylinder engine built specifically for this well. The pumping unit is scheduled to be on location by Wednesday of the upcoming week, ensuring readiness for the engine which is due on Friday, March 29th.
Cherokee 7-9 Well: Preparations for drilling at the Cherokee 7-9 well have been finalized. Construction of the road and drilling pad connecting the 5-9 and 7-9 wells is complete. Bob Pounds Drilling, a third-generation drilling company, that has drilled all ASE Cherokee wells to date, will mobilize their rig into position above the 7-9 well on either Monday the 25th or Tuesday the 26th to initiate drilling operations. We commit to providing regular updates on the drilling progress, with 2-3 portal updates scheduled for the upcoming week.
Tank Battery Facilities: Our centralized facility is steadily taking shape. Recent developments include the installation of two new tank batteries, each boasting a storage capacity of 250 barrels of oil, totaling 500 barrels for our Cherokee Phase 2 wells. Anticipating optimal well performance, we project daily or bi-daily tank filling once all wells are operational. In the forthcoming week, we will commence painting the tank batteries and positioning the water tanks, with further updates on storage facilities when nearing completion.
Cherokee 3-9 Well: Completion activities for the Cherokee 3-9 well are slated to commence during the week of April 1st. This process, expected to span 3-4 days, will pave the way for water injection into the well, facilitating our waterflood/pressure maintenance program within the Red Fork formation.
Flow Lines: Construction of flow lines to facilitate fluid transportation from our oil wells (Cherokee 5-9, 7-9, 8-9, and 9-9) to the Tank Battery Facilities is set to commence in the upcoming week. These flow lines will transport oil and water to their respective tanks after passing through our oil, water, and gas separators. Additionally, a dedicated flow line will enable water transportation from the centralized facilities to the 3-9 water injection well. These critical developments will involve digging trenches approximately 1.5 - 2 feet deep. We commit to providing detailed updates on this crucial aspect of the project.
As always, we remain committed to keeping you informed of all progress throughout the week ahead and beyond.
Best regards,
The ASE Team
