1st August 2024, Update

Dear Valued Investor Partners,

We hope you are well.

Since our last portal update, we have seen an increasing number of current investors contacting us regarding our Parker Fee oilfield asset. We appreciate that you have been waiting a long time to see any return on your investment, and we are grateful for your ongoing patience and trust in us.

As stated in the portal update on June 26th, once we close on the Parker Fee oilfield asset, we will allocate you direct ownership in the form of working interest. Because the 15 oil wells are income-producing with solid monthly Net Profit Before Tax (NPBT), we will be able to commence monthly revenue disbursements approximately 8-10 weeks after the scheduled closing date on August 15th.

We are excited to start monthly revenue disbursements and strongly believe that the Parker Fee oilfield represents a high-value asset with tremendous upside profit potential!

In our conversations with investors, we have provided additional information and insights, which in many cases have resulted in investors expanding their current ASE portfolio by securing additional Parker Fee ownership.

We understand that the minimum investment of $52,000 (1/4 unit) has prevented some investors from joining. We are pleased to announce that we now offer an affordable option for investors interested in directly investing with less than this amount, allowing you to purchase less than a 1/4 unit.

Additionally, to provide maximum value to current investors, we will give the highest Net Revenue Interest (NRI) ratio/allocation to each investor who secures a Series B investment. This ensures that investors who can only secure a Series B unit will still receive the same estimated ROI as Series A investors.

Here is some additional information and insights we have provided to ASE investors who have now secured additional ownership in the Parker Fee oilfield asset:

June Production: As reported by the Texas (Government) RRC, the 15 active wells produced 1,289 barrels, averaging 42.97 BOPD. A total of 1,486 barrels (including some oil from May) were sold across 9 truckloads, generating $118,538.22 in gross revenue at an average WTI oil price of $79.77 per barrel.

Investment Scenarios:

1. Base Case (77 BOPD):
   • Excluding additional oil production from the planned pressure maintenance program
   • Achieving only 50% of the projected oil production uplift from deepening 7 wells
   • Including current production from the other 8 wells (no deepening)
   • Series A: Estimated ROI = 320% & Payback = 51 months
   • Series B: Estimated ROI = 299% & Payback = 53 months
2. Parker Fee Prospectus (107 BOPD):
   • Excluding additional oil production from the planned pressure maintenance program
   • Achieving our oil production uplift target by deepening 7 wells
   • Excluding current production from the other 8 wells
   • Series A: Estimated ROI = 532% & Payback = 36 months
   • Series B: Estimated ROI = 503% & Payback = 38 months
3. Medium Case (131 BOPD):
   • Excluding additional oil production from the planned pressure maintenance program
   • Achieving our oil production uplift target by deepening 7 wells
   • Including current production from the other 8 wells (no deepening)
   • Series A: Estimated ROI = 692% & Payback = 30 months
   • Series B: Estimated ROI = 657% & Payback = 32 months
4. Medium-High Case:
   • We have not calculated the estimated ROI or capital payback for this case scenario because many factors could significantly increase production volumes and improve financial projections. Some factors that could boost your investment performance include:
     • Natural Gas Sales: Historical production peaked at 5,027 Mcf/month, which would generate $10,255.08 additional gross revenue at today's prices. Currently, no gas is being sold, but by deepening the wells, we expect to produce commercial amounts of gas. Please note that none of the above scenarios and financial projections include any gas production, so this would assist in increasing the payable monthly income to investors.
     • Deepening Additional Wells: In mid-late 2025, after deepening the first 7 wells, we could deepen the other 8 wells and potentially select other inactive wells to deepen, which could result in a substantial boost to oil and gas production.
     • Pressure Maintenance Program Implementation: Historically, pressure maintenance programs/waterfloods can extract up to a 1:1 ratio of reserves, potentially doubling the oil extracted over time. Based on the Parker Fee Reserve Report (3.35M barrels of primary reserves), it is possible to extract up to another 3.35 million barrels of what is known as secondary reserves. Please note that all of the above scenarios (1-3) have not incorporated any oil and gas production uplift from our planned pressure maintenance program.

We have included a newly created video that provides valuable ASE Parker Fee insights.

Please also visit the ASE Parker Fee investor resource page (updated today) by clicking this link.

The next step is to contact Dylan Knight (Dylan.k@alphasevenenergy.com) or Grant McLoughlin (Grant.m@alphasevenenergy.com) to book a full presentation via Zoom.

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Important Notice: This round of funding is due to close on August 15th. All agreements must be signed and funds transferred by Monday, August 12th.

Thank you for your continued partnership with Alpha Seven Energy.

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Best regards,

The ASE Team