Dear Investor Partners,

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We hope this portal update finds you well. As part of our commitment to transparency, we want to provide an update on the progress of the Cherokee 1-9 well and share the results from the analysis of Redfork rock samples conducted by Geologist Bob F. Pfannenstiel.The drilling team experienced mechanical challenges after reaching target depth and pulling out of the hole. Specifically, they lost circulation at 1,100 feet. The root cause analysis concluded that one of the drilling team did not follow protocol as per instructed. This has introduced a level of mechanical risk to completing this well, which could impact production.

In the best interests of the Phase 1 Limited Partners and to eliminate this risk, ASE, in collaboration with our drilling team, has made the proactive decision to relocate the Phase 1 well by 250 ft and recommence drilling on a new well. This strategic move is supported by the identification of a significant 45-50-foot RedFork formation, along with two other hydrocarbon zones. Please note, no additional costs will be incurred by investor partners due to the relocation of the new well, as the drilling team will cover this expense.

By drilling a new well, ASE aims to expedite oil and gas production. Additionally, the original well can be repurposed as an injection well, contributing to ASE's waterflood development program. This program, which maximizes hydrocarbon extraction and production rates, will benefit all investors in Phase 1 and the upcoming Phase 2 (5-well project). Waterflooding is a proven strategy designed to maintain pressure and has demonstrated high levels of success with regards to substantially increasing oil and gas production rates and total recoverable reserves.

Geologist Bob F. Pfannenstiel has already identified the next drilling location based on his report and samples, and we strongly believe that the new well will contain equal amounts of proven reserves. Preparations for the new well are already underway, and we expect to secure all necessary approvals within the next 5-7 days, enabling us to promptly recommence drilling operations.In summary, despite the mechanical challenges faced, we are extremely pleased with the findings from the Cherokee 1-9 well. It has been confirmed that the Cherokee project is now a significant oil field, surpassing our expectations with a 45-50-foot Red Fork payzone/formation and two additional hydrocarbon-bearing zones that can be co-mingled to greatly increase oil and gas production rates. This exciting information opens up the possibility of drilling up to 60 wells, amplifying future production opportunities.

Key takeaways from this investor portal update include:

• Anticipated delay of only 7-10 days due to ASE's proactive approach in relocating the Phase 1 well while keeping the rig and crew on-standby.
• The new Cherokee Phase 1 well will be closely situated, just 250 ft away from the current well location, directly twinning/off-setting the 1-9 well.
• The Redfork formation at the ASE Cherokee project has "exceptionally good hydrocarbon shows," measuring 45-50 feet in thickness, with the potential to reach up to 70 feet of payzone.
• The presence of two additional, highly probable hydrocarbon-bearing pay zones, bringing the total to three, providing substantial opportunities for increased oil and gas production rates.
• Geologist Bob F. Pfannenstiel, with over 40 years of experience, has described the Redfork formation (Cherokee samples) as some of the best-looking and thickest he has encountered in his career.

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As always, ASE is fully committed to keeping all investor partners informed about the Cherokee Phase 1 project's progress. Should you have any questions or require further information, please do not hesitate to contact us.

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Kind regards,

The ASE team