Dear Valued Investor Partners,
We trust this portal finds you well.
On Thursday, Dylan Knight and Peter Fagan made the journey to Payne County to conduct another site inspection. As we get closer to all of the Cherokee Phase 2 wells being in full production, Dylan has filmed a collection of videos, which we have compiled to provide more insight into the progression of the project.
Cherokee 3-9:
This well has been fairly consistent regarding oil production with a 20%-25% oil cut.
Cherokee 7-9:
Production commenced approximately 2.5 weeks ago and since Thursday it has started to "color up". A positive characteristic of this well and other Cherokee wells is the high volumes of fluid they produce, and we are confident that each of our Red Fork wells will achieve a similar oil cut to the Cherokee 3-9 well at 20%-25%.
Cherokee 8-9:
This well was recently tested in the Red Fork, showing less productivity than anticipated. In response, we have perforated both the Oswego and Big Lime formations, as these formations exhibited excellent oil and gas shows while drilling. The plan is to acidize both zones on (or before) the 2nd of July and to then starting the swabbing process.
We will keep the Red Fork open and produce from all formations simultaneously, with a high level of confidence that Red Fork production should improve once affected by our pressure maintenance program.
Cherokee 9-9:
The pumping unit has been painted, the flowline laid, and the new Arrow engine has arrived on location. There are approximately 1.5-2 days of work left to install the engine and commence production phase.
Our whole team is working diligently to complete all remaining scope of work so to get the remaining Cherokee Phase 2 wells online and to maximize the accumulative oil production.
Once again, thank you for your patience. We look forward to providing another portal update once all remaining works have been completed.
Best regards,
The ASE Team
