Dear Valued Partners,
We are pleased to announce a significant milestone being achieved. On Monday, we successfully sold our first full load of oil, comprising approximately 160 barrels. Looking ahead, we have two more loads scheduled for pickup this week - on Wednesday and Friday, totalling up to an impressive 480 barrels of oil sold for the week. This is perfect timing as oil (WTI) has seen a sizable increase in price since we commenced our drilling operations at Payne County!
Here is a summary on the latest Cherokee 2-9 well progress:
Oil Production Transition: Over the past 4-5 days, our dedicated team has been meticulously transitioning the oil production from the frac tanks to its permanent location, the tank battery.
Daily Oil Production: The well is currently achieving an average daily oil production of approximately 45 Bopd (Barrels of oil per day).
Flowing Pressure and Potential: The well has reached its own level of flowing pressure at 145 psi, despite a back pressure setting of 50 psi. This promising indication suggests that production could be substantially higher if the well is allowed to flow at full capacity.
Oil Quality Improvements: Recent oil samples have shown fluctuating results, yet overall, the percentage cut of oil to water has improved, currently at just under 40%. There is a high probability that this oil cut will continue to increase, potentially reaching up to 50%.
Strokes per Minute Optimization: Currently set at 6 ¾ strokes per minute, we plan to optimize the well's operation to 8 strokes per minute. At this frequency, estimated total fluids (including oil and water) could reach up to 160 barrels per day.
Unfortunately, our planned site inspection with Chris Hemsworth and Dylan Knight had to be rescheduled last week. However, we are pleased to inform you that they are now planning to conduct their site inspection this Wednesday. During their visit, they intend to capture additional raw video footage, which will be shared through our investor portal, providing you with further insights into our operations.
Warmest regards,
The Alpha Seven Energy Team
