Dear Valued Investor Partners,
We are pleased to provide you with the latest comprehensive update regarding the Lois Anne #2-1 and #3-1 wells' progress, including significant geological findings from our on-site technical team.
Total Depth Reached: 4,079 feet @ 12:40 (December 15, 2025)
The Lois Anne #2-1 well has successfully reached total depth, drilling approximately 3 feet into the target Viola formation. The drilling operation proceeded efficiently with excellent wellbore stability and minimal deviation throughout the process.
Following an overnight session on location with mud logger Levi Campbell reviewing wireline logs and samples, geologist John Dowds provided initial findings. These are preliminary observations based on field analysis; John will follow up with a comprehensive report including technical analysis early in the new year.
Significant Geological Discovery - Fault Structure Identification:
The Lois Anne #2-1 well, drilled approximately 75 feet from the Lois Anne #1-1 well, has encountered a fault structure. The #2-1 well is positioned 10 feet structurally higher than the #1-1 well, confirming a fault between the two locations. This is a very positive discovery, and greatly assists in identifying and mapping fault structures provides critical information for optimizing our oilfield development strategy.
Primary Target: Viola formation (open hole completion)
Potential Secondary Targets: Booch Sands, Calvin formation
Total Depth: 4,079 feet
The decision to cut approximately 3 feet into the Viola formation allows for optimal placement of production casing and ensures complete exposure of the productive interval during open hole completion operations.
During the drilling operations, the Lois Anne #2-1 well encountered seven distinct pay zones, demonstrating the multi-zone productivity potential of this geological structure. Detailed analysis of all zones is underway as part of John Dowds' comprehensive geological evaluation.
VIOLA FORMATION (Target Formation - 4,079' TD)
Initial Observations:
Current Status:
The Viola formation evaluation is in early stages. This is the only data point available before we commence drilling into the formation during completion operations. Additional formation characteristics will be revealed during the open-hole completion process.
BOOCH FORMATION (Secondary Target - 3,315 feet / -2,465 feet subsea)
The Lois Anne #2-1 well is positioned 10 feet structurally higher than the Lois Anne #1-1 well at the Booch formation level.
Structural Significance:
John Dowds believes the Booch encountered in the #2-1 well is actually the same reservoir as the ASE 3 well (best performing well to date). While slightly smaller (in depth) than the ASE 3 well, it exhibits all the characteristic features of this highly-productive, hydrocarbon-rich pay zone.
Formation Characteristics:
Geological Assessment:
These indicators demonstrate excellent hydrocarbon saturation in the Booch Sand interval and suggest strong production potential from this secondary zone. The correlation with the highly productive ASE 3 well (Booch reservoir) is a super exciting finding!
CALVIN FORMATION (Newly Identified Opportunity - ~2,200 feet / ~10 feet higher than Calvin in #1-1)
Significant Discovery:
The Calvin formation in the Lois Anne #2-1 well is positioned approximately 10 feet structurally higher than the Calvin in the Lois Anne #1-1 well. While the #1-1 well's Calvin didn't show significant hydrocarbon indications, the #2-1 well's Calvin exhibits very good hydrocarbon shows.
Formation Characteristics:
Geological Significance:
John Dowds was "thrilled" by the Calvin formation findings. This represents a potential new development target that wasn't anticipated based on the #1-1 well results. The structural position and the impressive shows suggest this could be a productive zone worthy of future development.
Development Context:
When drilling future wells targeting the Booch formation at approximately 3,300 feet, all wells will pass through the Calvin formation at 2,200 feet. This provides the opportunity to gather additional data on the Calvin across multiple well locations, allowing for a comprehensive evaluation before making development decisions.
Historical Production Context:
John referenced a Calvin pool in the area (in close proximity to our location) where wells typically drain 50,000 to 60,000 barrels. At 2,200 feet, the economics are usually very attractive for Calvin formation development.
Next Steps:
John will pull Calvin production data from offset wells in the area to better understand the formation's productivity and drainage characteristics. This comparative analysis will be included in his comprehensive geological report.
Fault Confirmation:
The identification of a fault structure between the #1-1 and #2-1 wells (only 75 feet apart, but 10 feet of structural displacement) provides critical information for oilfield development planning.
Booch Correlation:
The preliminary assessment that the Booch in the Lois Anne 2-1 well correlates with the productive Booch (ASE 3) reservoir suggests the north side of the lease may have a favorable structural position for Booch development.
Development Strategy:
John indicated that these findings potentially confirm that the Booch is on the north side of the lease, which could support multiple drilling locations in this favorable structural position. The more data gathered from the #2-1 and upcoming #3-1 wells, the better the development plan can be optimized.
The drilling team initiated early mud circulation at 1,800 feet to ensure high-quality sample recovery and wireline log readings in critical zones:
Ada Formation Sampling - Enhanced sample quality through improved wellbore integrity
"Stray" Zone (~1,175 feet) - Detailed evaluation of this historically productive interval
The early mud program significantly improved:
Immediate:
Following Lois Anne #3-1:
Once the #3-1 well is drilled across the fault line on the adjacent lease, the technical team will have sufficient data to:
Updated Schedule: Spud date for Lois Anne #3-1 has been adjusted to Tuesday, December 23, 2025.
This strategic timing adjustment allows the drilling crew to:
The brief pause in operations will not impact overall project timelines and ensure optimal crew performance during the critical drilling phases ahead.
Following completion of the Lois Anne #2-1 evaluation, we will repeat this detailed sampling and analysis program on the Lois Anne #3-1 well. This well will be drilled on the opposite side of a significant geological fault structure on the adjacent lease (part of the ASE Oddfellows Oilfield).
Strategic Value:
The side-by-side comparison across the fault will allow our technical team to determine optimal development strategies for the Ada Sands, "1150 Stray", Booch, Viola, 1st Wilcox, Hunton, Woodford, and potentially the Calvin pay zone, maximizing recovery from both structural positions on other sections of the ASE Oddfellows Oilfield.
Permit Status: The drilling permit for the Lois Anne #3-1 well has been approved by the Oklahoma Corporation Commission (OCC).
Target Formation: Wilcox formation
Anticipated Spud: Tuesday, December 23, 2025 (adjusted from Saturday due to Christmas holiday scheduling)
The Lois Anne #3-1 well sits across a significant fault structure from the 1-1 well, allowing direct comparison of formation characteristics and optimal zone selection for future development across the ASE Oddfellows Oilfield.
Complete Lois Anne #2-1 and #3-1 Wells
ASE 4 Disposal Well Approval
ASE 1 Three-Zone Completion
Infrastructure Completion
Drill & Complete the Lois Anne #4-1, #5-1, #6-1 Wells
Continued Portfolio Optimization
The oilfield development program continues advancing on schedule with strong technical results, efficient operations, and strategic integration of infrastructure investments.
Key Highlights:
The comprehensive formation data being gathered from the Lois Anne #2-1 and upcoming #3-1 wells will guide optimal development of the remaining portfolio locations across the ASE Oddfellows Oilfield.
Have a wonderful holiday season, and we will provide additional portal updates between the Christmas break and into the new year.
Best regards,
THE ASE TEAM
