Dear Valued Investor Partners,
We hope this update finds you well.
In this portal, we will provide you with the latest developments regarding your investment in Phase 2 of the Cherokee project.
May Production Performance:
STRATEGIC DEVELOPMENT PLAN
Original Enhancement Strategy Update: An AFE for the proposed scope of work for our enhancement strategy, as outlined in the last portal, has been completed. However, following further analysis and considering current low oil prices, this strategy has been put on hold.
New Water Injection Strategy: During our meeting with our operations team last week, we identified an alternative strategy to boost oil production. A local operator is currently disposing of water, and we are now in communication to establish an agreement where, instead of injecting the water into a disposal well, we would pipe the water into the Skinner formation.
Current vs. Projected Capacity: Currently, we are only able to inject approximately 100 barrels per day. With this new strategy, we may be able to increase current water volumes by 400% to 500% per day.
Implementation Plan: Based on securing this agreement, we would substantially increase the water volume for our waterflood operation. Looking forward, we would then monitor production for 2 to 3 months, and based on the positive impact on production rates, we would then look to implement our enhanced strategy by opening up other wells that contain the Skinner formation. This approach would give us the confidence and a high probability of seeing substantial increases in daily oil production.
ALPHA SEVEN ENERGY INVESTMENT PORTAL
Last week, we initiated our phased rollout of the new investment portal to a limited number of ASE investors. This approach allows us to identify and resolve any technical issues before the full-scale launch to all investors.
TAX DOCUMENTATION UPDATE
We have received confirmation from our accounting team that K-1 forms will be completed and filed within the next 3-4 weeks.
UPCOMING COMMUNICATIONS
Our next investor portal update will be released on Thursday, July 10th (US time).
Best regards,
THE ASE TEAM
