Dear Valued Investor Partners,
We trust you are doing well and are pleased to post the latest update on our Cherokee Phase 2 project.
As of today, Friday, June 7th, 2024, we have made significant progress. As you know, May was a very wet month in Payne County, Oklahoma, with more rainy days than dry ones, along with challenges from tornadoes and lightning. Unfortunately, this weather delayed the project's conclusion by approximately three weeks. However, with a recent break in the relentless inclement weather, we have made considerable progress this week.
Cherokee 3-9 Well:
Today, we have set the pumping unit and new engine on the 3-9 well. We will start the 3-9 tomorrow morning, Saturday, June 8th, to monitor it throughout the day. We prefer not to turn new wells on in the late afternoon or at night to ensure we can observe them during the day when they first go into production. The 3-9 should be running oil and fluids into our new tank battery facilities by early next week.
Cherokee 5-9 Well:
Our 5-9 injection well has been operational since Tuesday this week, taking water from the Cherokee 2-9 well (Phase 1). We have officially started our water flood/pressure maintenance program in the Red Fork Formation. As the remaining wells in Phase 2 come online, the water intake will increase, and we anticipate a positive impact on oil production rates in all four of our oil wells in Phase 2.
Cherokee 7-9 Well:
Today, we are setting the pumping unit and its new engine on the 7-9 well. It will also be running fluids (oil and water) into our tank battery facilities next week.
Cherokee 8-9 Well:
We have a K&W "double triple" rig over the 8-9 well today. We have perforated about a 40-foot section of the Red Fork in that well at two holes per foot. On Monday, we will perform a significant acid job of 2,000 gallons and swab it back to evaluate its condition before fracking later next week.
Cherokee 9-9 Well:
On Wednesday, we will move the "double triple" rig to the 9-9 to acidize and frac the Red Fork formation in that well, commingling it with the previously completed Skinner formation. Weather permitting, all these wells should be fully operational within the next two weeks.
On Monday, June 10th, Senior Partners Dylan Knight, Chris Hemsworth and Grant McLoughlin plan to visit our Cherokee lease to capture the latest progress. We will provide further updates and videos in the first half of next week.
Have a wonderful weekend.
Best regards,
The ASE Team
