Dear Valued Investor Partners,
We are pleased to announce the successful drilling and logging of the Cherokee 3–9 well, marking a significant milestone for our Phase 2 project. More importantly we are delighted to report that preliminary results have surpassed our expectations.
The Cherokee 3–9 well has penetrated approximately 40 feet of the Red Fork formation, representing a notable improvement over the Cherokee 2–9 well, with an additional two feet of pay zone. Furthermore, we have made an exciting discovery of a second hydrocarbon zone known as the Skinner formation, boasting approximately 12 feet of pay zone.
Our project Geologist, Bob Pfannenstiel, has emphasized that the presence of the Skinner formation in the 3-9 well increases the likelihood of other Cherokee wells also containing this valuable formation.
Moreover, the compatibility between the Red Fork and Skinner formations presents a promising opportunity, enabling us to extract resources from both formations simultaneously. This is because the Skinner formation exhibits no water production, and up to a 100% oil cut.
In light of these exciting developments, we are considering the possibility of commencing short-term oil production from the 3–9 well while we proceed with the drilling and completion phases of the remaining four wells in Phase 2. It is important to note, that if this strategy is implemented the 3-9 well will still be the water injection well for Phase 2. Please be assured that any decisions made will be in the best interests of our investors and we will inform you via the portal once a decision has been made.
Additionally, Dylan has captured more video footage documenting the casing procedure of the 3-9 well and provides further insights into the well's status and the anticipated start of operations for the 4-9 well.
Best Regards,
The ASE Team
