5th April 2025, Update

Dear Valued Investor Partners,

We hope this update finds you well.

Before proceeding with the project update, we would like to inform you that all required financial reports have been submitted to our accountants for the processing of the K-1 forms

Below is a summary of the latest developments for Phase 2 of the Cherokee project.

Revenue Distribution

Unfortunately, there will be no revenue distribution to the ASE Cherokee Phase 2 LP for this cycle. Due to lower-than-expected oil production, the revenue generated was insufficient to cover monthly operational expenses.

Strategic Solution & Implementation

As outlined in our previous update, we have developed and are preparing to implement a plan to enhance oil production. The following actions are scheduled to commence:

• Cherokee #3 Well
  • We will perforate and hydraulically fracture the Skinner Formation.
  • The Skinner zone will be commingled with the existing Red Fork production.
  • The well will then be returned to pump.
  • The saltwater injection from Cherokee #5 is expected to stimulate the Skinner zone in the #3 well, improving output.
• Cherokee #8 Well
  • The Arrow engine will be sent to a specialist repair shop in Oklahoma City.
  • Once serviced and reinstalled, the well is expected to resume production.
  • This will also increase saltwater injection from approximately 150 barrels per day to 300 barrels per day, which will enhance the waterflood impact across both Cherokee #9 and Cherokee #3.
• Waterflooding Plan
  • The Skinner Formation features a narrow productive channel.
  • By opening both Cherokee #9 (south of the injection well) and Cherokee #3 (north), we aim to create a stronger injection influence and improve overall recovery rates.

Funding & Repayment

We are pleased to share that, in principle, a funding source has been secured to cover the full cost of the outlined initiatives. While the final terms of the agreement are currently being finalized, the capital investment will be repaid through future monthly net revenue.

We are optimistic that this strategic initiative will lead to a boost in production and increased long-term value for all Limited Partners.

Our next portal update will be published at the end of the first week of May, and we look forward to sharing further progress with you then.

Best regards,
The ASE Team