Dear Valued Investor Partners,
We hope this update finds you well. This month marked a major milestone for the programme, with the surface infrastructure for the first of the new wells completed and preliminary gas production now commenced on the Lois Anne #2-1. Please find a summary of the latest developments below.
FIELD INFRASTRUCTURE, TANK BATTERY NOW FULLY OPERATIONAL
The new tank battery is now fully operational, with the free water knockout, gas separator, water tank, and oil tanks all installed. The flow lines are being buried and installed, completing the final piece of surface infrastructure required to bring the new wells into full production.
LOIS ANNE #2-1, PRELIMINARY GAS PRODUCTION COMMENCED
Status: Preliminary Gas Production Commenced
The Lois Anne #2-1 has reached a significant milestone, with preliminary gas production now commenced. During June, the pumping unit was set on location and pressure readings were encouraging, with casing pressure of 320 psi and a calculated bottom hole pressure of 381 psi.
Fluid levels were shot on the well, and based on this information and the strong downhole pressure, the well has been producing gas over the last few days, with gas volumes starting to increase. We are now booking our workover team to run rods and set up the pumping unit, and we are awaiting power to be installed, not only for this well but for the wider ASE Lois LP facilities.
LOIS ANNE #1-1
Status: Producing
The Lois Anne #1-1 produced steadily throughout June, delivering consistent oil and gas volumes. We plan to drill out the bridge plug and re-open the Wilcox perforations, which would be commingled with the current Hunton production. This work is planned to follow the commissioning of the field disposal system, which will provide the water handling capacity to support the additional production.
Following our discussion with geologist John Dowds, he advises that this well is also a strong candidate to open up the Booch formation, which would mean producing from all three zones simultaneously. We are confident we can secure OCC approval for this, as there is strong evidence of a fault dividing the #1-1 and the #2-1 wells. This is something we are actively working on, and we will provide further updates in the following portals.
LOIS ANNE #3-1
Status: Drilled Uncompleted
The Lois Anne #3-1 remains drilled and cased, with completion scheduled to proceed once the saltwater disposal system is up and running. This sequencing ensures the well can be brought online with full water handling capacity in place from day one.
LOIS ANNE #4-1
Status: Shut-in
Fluid levels were shot on the Lois Anne #4-1 during June, showing minimal pressure at the wellhead and a calculated downhole pressure of 24 psi. The well is shut-in while future development plans for the field, including a potential waterflood, are evaluated. The pressure data gathered this month is a valuable input into that planning work.
We held a meeting with our geologist John Dowds, who will take this to his group of engineers to determine the best course of action to bring this well into production, with multiple frac designs and processes available for consideration. Based on the logs, this well shows the best looking Booch across the entire oilfield, with 20% porosity, which is very high. We know the oil is there, and what is lacking is the drive. The Booch formation is gas driven and contains almost zero water, which is why a waterflood could be the best solution, not only to recover the primary oil but also to extract the secondary oil.
LOIS ANNE #5-1, LOCATION SELECTION IN FINAL STAGES
We held a meeting with our geologist John Dowds this week, and we are currently in the final stages of selecting the location for the next well in the programme, the Lois Anne #5-1. This selection is being informed by the extensive geological data gathered from the wells drilled to date, ensuring the #5-1 is positioned to deliver the best possible result. We will confirm the selected location and the forward drilling plan in an upcoming portal release.
WATER DISPOSAL, PERMITTING PROGRESSING WITH THE OCC
The disposal well permit application for the field has been accepted by the Oklahoma Corporation Commission (OCC) and the permitting process is progressing well. Water samples have been obtained and the proposed wellbore schematic has been filed with the OCC. The completion AFE is ready for approval, positioning the programme to move quickly once the OCC approval is received. Dedicated disposal capacity is a key enabler for the field, unlocking additional production across all of the wells.
COMING UP, JULY 2026
Lois Anne #2-1: Workover team to run rods and set up the pumping unit, with power installation to follow for the well and the wider facilities
Water disposal: Awaiting next steps from the OCC
Our next scheduled investor portal update will be released on or before August 12th, 2026.
Best regards,
THE ASE TEAM
