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9th December 2025, Update

January 9, 2025

Dear Valued Investor Partners,

Here is the latest update on the Lois Anne 1-1 well following the completion of the Hunton formation, including drilling timelines for the Lois Anne 2-1 and 3-1 wells.

LOIS ANNE #1 WELL - CURRENT PRODUCTION STATUS

Preliminary Production Rates

Current Performance:

  • Oil: 8-10 barrels per day
  • Water: 50-60 barrels per day
  • Gas: Production building, being sent down the line (meter readings to follow in future portal updates)

Field Operations & Infrastructure Development

Current Configuration:

  • Temporarily plumbed into ASE 4 flow line
  • Routing to the ASE 4 tank battery on a temporary basis
  • New tank battery under construction
  • New flow lines are being laid for permanent ASE Lois LP infrastructure

Recent Progress: During the flowback period, we were flowing the fluids into the frac tanks. As we commenced construction of the permanent tank battery facilities, we connected the lines to the ASE 4 facilities. In just the past few days, we have been filling up the oil tanks.

HUNTON FORMATION - HISTORICAL PERFORMANCE DATA (OKLAHOMA)

To provide context for the Lois Anne #1 well's potential, we researched 4,300 Hunton formation wells across Oklahoma. Here is what our comprehensive analysis uncovered:

Unique Hunton Formation Characteristics

  • Large initial water production (decreases over time)
  • Gas-oil ratio decreases initially, then increases as water clears
  • Wells typically produce water first before hydrocarbon production stabilizes
  • Excellent reservoir connectivity

Historical Production Rates

Production Rates:

Oil Production:

  • Low Range: 100-250 barrels of oil per day (BOPD)
  • Mid Range: 250-500 BOPD
  • High Range: 500+ BOPD (exceptional wells)

Gas Production:

  • Typical Range: 250-500 Mcf per day
  • High Range: 1,000-2,000 Mcf per day

Modern Well Performance:

  • Low: 238 BOPD + 275 Mcf/d
  • Mid: 415 BOPD + 352 Mcf/d
  • High: 485 BOPD + 285 Mcf/d

Production Context for Lois Anne 1-1 Well

The Lois Anne 1 well is currently in the early production phase, with 8-10 BOPD during the final load water recovery period. Based on historical Hunton formation performance data, wells typically show significant production increases as water production decreases and gas-oil ratios stabilize. The strong gas presence and oil filling the tanks are positive early indicators of the well's potential to reach low-to-mid range production rates over the coming months.

Once the ASE 4 disposal well receives regulatory approval, we will have the capability to co-mingle multiple formations—such as the Wilcox and Hunton—within individual wellbores. This strategic flexibility is made possible by having a cost-effective saltwater disposal solution in place, which eliminates the economic constraint that previously made high-water-cut formations unviable. By efficiently managing produced saltwater through the ASE 4 disposal facility, we can unlock additional productive zones and maximize hydrocarbon recovery across the field without being limited by water handling costs.  

ASE LOIS LP DEVELOPMENT STATUS & TIMELINES

Lois Anne #2 Well

Target Formation: Viola formation (open hole completion)
Secondary Zone: Booch Sands
Scheduled Spud Date: By mid-December 2025

Lois Anne #3 Well

Target Formation: Wilcox formation
Scheduled Spud Date: Approximately 7 days from the Lois Anne #2 spud date
Drilling Plan: Back-to-back drilling operations planned for maximum operational efficiency

Drilling Rig Schedule: The drilling rig is scheduled to arrive on location within 24-48 hours, with both wells planned for consecutive drilling operations to optimize rig mobilization costs and accelerate the development timeline.

We will provide comprehensive updates as drilling operations commence on Lois Anne #2 and #3 wells.

Best regards,

THE ASE TEAM

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