Dear Valued Investor Partners,
We hope this latest update from the Cherokee Phase 2 project finds you well.
Despite encountering several challenges, mainly mechanical and weather-related, we continue to make progress towards maximizing oil production from our wells. Below is a detailed breakdown of the current status of each well, the work still to be completed, and a short video from today (Friday, July 26th).
Cherokee 3-9
- Status: The fluid level was recently measured, showing a 300-foot column above the downhole pump. Daily production indicates slow pumping.
- Plan: Continue monitoring. As the fluid decreases, the oil cut remains consistent, typical for Red Fork wells. Introducing additional compatible saltwater into the 5-9 injection well should gradually increase fluid levels and oil production.
Cherokee 5-9 (Injection Well)
- Status: Approximately 10,500 - 11,000 barrels of water injected into the Red Fork formation.
- Outlook: Optimistic about the water injection/pressure maintenance program yielding positive results in surrounding wells over the coming weeks and months.
Cherokee 7-9
- Status: Fluid level was recorded at 400 feet from the surface. The well has not produced oil up the tubing but showed significant oil flow when changing the downhole pump recently.
- Plan: Replace current tubing with new "Blue Band" tubing tested to 7000 psi on Monday, July 29th. This should resolve the issue and start oil production.
Cherokee 8-9
- Status: Open in the Red Fork but lacks sufficient porosity for significant daily production. Noted oil and gas shows in the Big Lime and Oswego formations.
- Plan: Pumping below the Red Fork formation, with positive signs of increased daily oil cut. Monitoring for additional oil production from the Oswego formation that could be beneficial for all Phase 2 wells.
Cherokee 9-9
- Status: Open in both the Skinner and Red Fork formations. The Skinner formation shows minimal oil production.
- Plan: Pump every three days to prevent equipment wear. If injected water increases oil output from the 9-9, consider opening the Skinner in other wells.
Production Update
- June Sales: Sold 1 load totaling 167 barrels of oil to our purchaser, Emmaus Energy and currently we have sold 3 loads (499.8 barrels) in this month.
- Payment Schedule: Revenue distributions from June's oil production will be paid in August. July's production will be paid in September, continuing every month (based on oil sales).
We will continue to provide updates as we optimize these wells to achieve their full production potential.
Please see the short video below. It was recorded by David, one of our field superintendents. While he is not fully proficient with video recording on his mobile device, we felt it was worth sharing.
Best regards,
The ASE Team
