Dear Investor Partners,
We are extremely pleased and proud to extend our heartfelt congratulations to all Phase 1 Cherokee investor partners for this significant milestone: we've struck oil!
Here is a concise summary of the events that transpired during this week that marks a significant milestone achieved in the ASE Cherokee oilfield development (all days/times are in US Time):
Wednesday
The Cherokee 2-9 well exhibited increasing pressure, accompanied by a rise in gas levels. Overnight, the separator reached full capacity with oil, and the well was initiated with such vigor that it overwhelmed the separator, causing oil to escape the kimray, with some spillage on the ground. Our on-site team acted promptly and swiftly cleaned up the affected area. Initial estimates suggest the well gave up approximately 40 barrels of oil within a 12-hour window.
Remarkably, this was achieved despite the presence of 550-600 barrels of load water yet to be removed. All indicators at this stage were very promising indeed, pointing towards the Cherokee 2-9 being a highly productive well!
Thursday
At 8:15 PM, the well commenced flowing up the tubing, immediately yielding oil production. Each sampled instance revealed an oil cut of approximately 20%. The well is currently pumping at 6 3/4" strokes per minute while agitating the fluid to maintain a continuous flow. Tubing pressure was set at 100 psi to sustain back pressure, compressing the fluid within the tubing to ensure consistent flow and prevent overflow. The tubing pressure has now stabilized at 145 psi, and we can confirm that the well is flowing without requiring pumping up the tubing. The pump will continue to agitate the well to sustain this optimal flow.
Presently, 300-350 barrels of load water still need removal, and the well is exceeding our initial predictions, especially considering the substantial mass weight of the remaining load water sitting on top of the reservoir. As the flowback phase advances, we anticipate observing an increased oil cut. All reports and indications affirm (at this stage) that this well is outperforming other neighboring wells. We are eagerly awaiting the completion of the flowback phase and anticipate a surge in production rates.
Once again, a resounding congratulations to all Phase 1 investors. We would also like to extend our heartfelt appreciation to our dedicated team whose unwavering commitment has propelled us toward this favorable outcome, benefiting all stakeholders and, notably, our valued investor partners.
Warm regards,
The Alpha Seven Energy team
