Phase 3 (ASE 19 1H)
Valued Partners,
As all investors are aware, we have been in a holding pattern for some time, with limited updates to provide. The delays in Phase 1 have unfortunately had an impact on Phases 2 and 3. As a company, we always endeavour to be solution-focused and we are still working on multiple fronts to achieve the best possible outcome for the project.
Regarding the Phase 3 project, we are happy to report that we do have a solution to expedite the period in which investors start receiving oil & gas revenue. Per the PPM (Private Placement Memorandum), "The Managing Partner may be presented with other opportunities on behalf of the Partnership that the Managing Partner thinks might better maximize the return of the Partnership. If the Managing Partner makes such a decision, the Managing Partner shall notify all Partners."
ASE has a second project in Oklahoma (Payne County), for which we are the official operator on file, and we have engaged a local drilling team who has successfully drilled multiple wells on and surrounding the acreage. The plan is to reallocate a small proportion of each investor's interest (in Mesa Vista Phase 3) into the Cherokee Phase 2 well, with the intention of expediting the time to commence receiving oil and gas revenue. Please note, we are still finalizing the details of the allocation of interest in the Cherokee Phase 2 well, and once confirmed there will be another portal update and direct communication with each investor regarding their exact percentage of interest in this well.
At present, the road and drilling pad have been constructed, and the permit to drill has been approved. The Phase 1 well and the Cherokee Phase 2 will be next in the queue to be drilled. Once we have staked the well and received the permit to drill, we will set up the Cherokee Phase 2 Investor Portal and provide progress reports. Once again thank you to all of our project partners for your understanding and patience.
