Dear Valued Investor Partners,
We hope this portal update finds you well.
- Revenue Distribution:
- Despite a full truckload of oil being sold, there is no revenue distribution to ASE Cherokee Phase 2 LP for this payment cycle.
- This is due to previous expenses, as reflected in the settlement statement below.
- Operational Strategy & Meetings:
- Over the past 1–2 weeks, we have conducted multiple meetings focused on optimizing oil production.
- Our primary objective is to boost oil recovery and maximize monthly oil sales.
- Waterflood Implementation:
- As previously discussed, we are actively implementing a waterflood strategy by injecting water into the Skinner Formation.
- The current challenge is water availability—our injection process relies on water extracted from the Red Fork formation, which is not yet sufficient to generate the desired impact.
- Geological Insights & Next Steps:
- Our project geologist, Bob Pfannenstiel, remains confident that specific process improvements can significantly increase water production and injection efficiency.
- Several viable options are under evaluation, and we are working toward finalizing a strategic action plan in the coming weeks.
We appreciate your patience and understanding as we work diligently to maximize the value of your investment. Further updates will be provided in the next portal update, as we solidify our next steps. Please note that portal updates will be posted at the end of the 1st week of each month.
Best regards,
The ASE Team
