Dear Valued Investor Partners,
We hope this portal finds you well. Below is a summary of the latest Phase 2 developments.
Revenue Distribution
- Although oil (1 full load) was sold in December, zero revenue distribution will be made to ASE Cherokee Phase 2 LP for this payment cycle.
- This is due to operational expenses, as reflected in the settlement statement below.
Challenges & Strategic Solutions
- Low production levels and operational costs continue to challenge positive cash flow for investor distributions.
- After productive meetings this week, we have developed a strategy to enhance oil production.
Production Optimization Plan
- Perforating the Skinner Formation in the 3-9 well to improve oil recovery.
- Opening the Prune Formation in the 8-9 well to enhance makeup water availability.
- Maximizing the waterflood process in the Skinner Formation with the intention of boosting oil production.
Capital Investment Update
- Typically, Limited Partners receive a capital call notice to contribute their share of the Authority for Expenditure (AFE).
- However, we are close to finalizing a funding source that would allow us to cover the required capital investment without additional investor contributions.
- Further details will be provided in our next portal update.
The next portal update will be released at the end of the first week of April.
Best regards,
The ASE Team
