Dear Valued Partners,
We trust this message finds you in good health and high spirits.
Cherokee 2-9 Well Progress Update:
We are delighted to share that all essential subcontractors and service providers required for the Cherokee 2-9 remedial works are now confirmed and actively engaged in preparatory tasks. Barring any unforeseen weather challenges, we are optimistic that the well will be fully operational by or before November 13th.
As part of the natural life cycle of oil wells, periodic interruptions for repairs and maintenance are inevitable. Our unwavering commitment is to expedite the return to production while upholding the highest standards of workmanship and safety. It's worth noting that during the well's downtime, oil accumulates behind the pipe, and we anticipate a substantial increase in production upon resumption, often referred to as "flush production."
Additional Supporting Infrastructure:
During the Cherokee 2-9 downtime, as previously communicated in our portal updates, our team has been diligently working on building the necessary infrastructure to facilitate high-volume hydrocarbon production. We are pleased to announce the completion of the final scope of work, including the installation of a 1.5-mile, 2-inch flowline from the Cherokee 2-9's new battery facility to our SWD (Saltwater Disposal) well. This strategic addition is expected to have a positive impact on our monthly operational expenses by eliminating the need for trucking, resulting in daily savings of approximately $500.
ASE`s Innovative Waterflood Strategy:
Following our exciting revelation of the waterflood strategy, we have received multiple inquiries from Phase 1 investors regarding its potential impact on the Cherokee 2-9 well. Our geologists are supremely confident about its positive effects, primarily due to the proximity of Phase 1 to Phase 2.
In addition, our dedicated geologists have recently completed an exhaustive mapping of the entire Refork Channel System spanning our expansive 1,000-acre project. These meticulously crafted maps not only outline the precise locations of the upcoming Phase 2 wells, totalling 5 but also offer a comprehensive vision of our future Phases. We are thrilled to announce that we intend to unveil this invaluable information and these detailed maps on Friday, the 17th of November.
The significance of this detailed information and these maps is paramount, as they are set to play a pivotal role in our final geological report. They will not only shed light on the Cherokee project but will also provide valuable insights into other analogous Redfork Water Floods in the surrounding region. Most notably, these projects are situated within the same channel system as our Cherokee endeavour, underscoring the broader applicability and potential success of our strategy.
In parallel, we have initiated the design process for the inaugural phase of our Pressure Maintenance infrastructure in collaboration with our Waterflood Petroleum Engineer. This proactive step is a testament to our commitment to maximizing the productivity and longevity of our assets.
Our team is highly enthusiastic about the project's overall potential value once our Pressure Maintenance strategy is implemented. Extensive research on other similar fields in the area has demonstrated the Redfork Formation's significant productive reserves, which respond extremely well to increased pressure.
Site Visit and Investor Engagement:
In a show of our commitment, all ASE Senior Partners will be travelling to Payne County next week. During this visit, we will conduct a thorough site inspection, engage in multiple meetings with key personnel, and welcome investors who have taken the initiative to visit our Cherokee project in person.
Please stay tuned for our next portal release, where we will provide an update on the remedial works on the 2-9 well, accompanied by informative videos.
Best regards,
The Alpha Seven Energy Team
