Dear Valued Investor Partners,
We trust you are keeping well.
Disruptions and Strategic Shifts:
- MXP's actions have significantly disrupted multiple projects, notably drilling the Mesa Vista Phase 3 well.
- ASE has redirected its focus to maximize investor value through other projects to deliver working interest value to ASE Mesa Vista Phase 3 LP from other wells and projects.
New Project Announcement:
- Alpha Seven Energy is pleased to announce a plan to deliver working interest from our latest project.
- The project features a diverse portfolio of 25 wells, including 15 income-producing oil wells.
Extensive Infrastructure and Production History:
The oilfield asset incorporates:
- Two large oil storage and handling facilities.
- Three gas wells that assist in powering both the West and East facilities.
- One water injection well.
- Several inactive wells.
- Comprehensive production data and history.
- Robust production history since 1960, with detailed reserve reports and supporting evidence to accurately estimate remaining oil reserves.
Substantial Value and Additional Upside Profit Potential:
- Current daily production: 44.23 to 46.18 barrels of oil per day (BOPD).
- This generates significant net profit before tax (NPBT) paid as monthly revenue disbursements.
- Potential to increase oil production to 107.3 BOPD, and possibly as high as 130.9 BOPD by implementing our strategic Three-Step plan.
The ASE Strategic Three-Step Plan:
Step 1: Maintain and Enhance Efficiency
- Maintain current production levels.
- Conduct minor works to increase oilfield efficiency.
Step 2: Deepen Selected Wells
- Drill selected wells deeper by approximately 25 feet.
- This process aims to significantly increase the asset value and payable monthly NPBT (Net Profit Before Tax).
- A proof of concept well, already drilled deeper by 25 ft (approximately 4 years ago) has shown a massive increase in oil production.
Step 3: Pressure Maintenance Program Implementation
- Conduct a proven pressure maintenance program to extract secondary hydrocarbons
- Simultaneously produce the remaining primary reserves
- This includes extracting an estimated number of barrels based on current production, along with additional untouched pay zones located 10-25 feet below the current wells' TMD (Total Measured Depth).
ASE`s Capital Raising and Asset Acquisition:
- Capital raising commences this week.
- Plan to purchase 50% of the oilfield asset in August, contingent on raising the first half of the capital funding target of USD 2.1M.
- Upon finalizing the first half of the asset acquisition, half of the working interest allocation for the ASE Mesa Vista Phase 3 LP will be delivered, with monthly revenue disbursements to follow within 2 months.
- Continue capital raising for the remaining 50% of the oilfield asset, aiming to hit the remaining USD 2.1M target and deliver the other Mesa Vista Phase 3 LP working interest allocation.
- The best-case scenario (for everyone) is achieving the total capital raise as quickly as possible. This will enable ASE to promptly deliver the working interest, followed by monthly revenue to each limited partner. Is it important to understand that the rate at which we raise the capital will help determine the maximum amount of working interest we can allocate to the ASE Mesa Vista Phase 3 LP. Please note, that we will not know the exact working interest allocation (for each 50%) until the capital raise for each acquisition has been completed.
Accessing Project Information:
- Project details are housed within a password-protected page, accessible using your investor portal login credentials.
- Due to the sensitive nature of the information, an electronic Non-Disclosure Agreement (NDA) must be agreed to before reviewing the project details. This can be done by clicking the link below, reading the NDA, and agreeing.
http://www.alphasevenenergy.com/ase-latest-project
Best regards,
The ASE Team
