Dear Valued Partners,
We trust this message finds you in good health and high spirits.
Progress Update on the Cherokee 2-9 Well:
Since the commencement of oil sales in October, the Cherokee 2-9 well has exceeded expectations, producing approximately 800 barrels of oil, equivalent to five truckloads. Despite the well being temporarily offline, we are pleased with the impressive production achieved to date.
Mechanical Issue and Future Plans:
We have identified a mechanical issue related to the pump's operation, caused by frac sands entering the wellbore during a storm-induced generator shutdown. To address this, a workover rig will be mobilized to rectify the situation, improve pump functionality, and enhance oil production upon resuming operations. This downtime will also allow us to complete final completion work and optimize overall efficiency.
Power Infrastructure Development:
We are glad to inform you that Indian Electric has initiated the construction of a three-phase electricity system. Once operational, this infrastructure will eliminate the need for a generator, ensuring a consistent, reliable, and cost-effective power supply for the Cherokee 2-9 well and the upcoming phase 2.
Enhanced Water Management:
Efficient water management during hydrocarbon production is paramount. We are in the process of implementing an electric transfer unit powered by the upcoming three-phase electricity, facilitating the direct pumping of water into the saltwater disposal (SWD) unit via a pipeline. This innovation will streamline operations and reduce operational expenditures.
Optimized Oil Storage Facilities:
In our endeavor to fast-track oil production, we have decided to retain the large frac tank for oil storage, subsequently transferring the oil to a 200-barrel tank battery in order to be sold. Currently, our team is actively establishing permanent facilities in readiness for when oil production recommences.
Thank you for your continued trust and support which helps us to strive for excellence.
Best regards,
The Alpha Seven Energy Team
