Dear Valued Investor Partners,
We hope this update finds you well.
In this portal, we will share the latest developments across all aspects of the ASE Parker Fee Oilfield operations.
JANUARY 2026 PRODUCTION UPDATE
January 2026 Production Performance:
- Total Oil Production: 1,205.15 barrels
- Oil Sales: 906.81 barrels
- Average Daily Production: ~39 BOPD
Significant Operational Challenges - Power Grid Issues
January presented unprecedented operational challenges for the Parker Fee oilfield due to multiple power grid failures:
Power Outages:
- January 3-4: Grid down
- January 16-20: Extended outage to replace power poles impacted by the 2025 wildfires
- January 23-27: Lease shut-in due to severe freezing temperatures
Production Impact: Production was reduced by approximately 60% during power grid downtime. All of the above factors significantly impacted total production and sales from the lease in January.
Current Status: All production has been fully restored as of January 28th, and the field is operating normally following resolution of power infrastructure issues.
UPCOMING WORKOVER OPERATIONS
Well #41 - Scheduled February Operations
Timing: First week of February
Well #41 is scheduled for workover operations in early February to address operational requirements.
Well #54 - Gas Production Restoration Proposal
Current Status: Shut-in
Proposed Scope of Work:
An Authorization for Expenditure (AFE) is being developed for Well #54 workover operations. The proposal includes:
- Drill out bridge plug - Restore access to deeper gas-producing zone documented in well files
- Support lease operations - Gas production will support compressor operations for the lease vacuum system
- Return to sales - Potentially reconnect the lease to the gas sales meter for commercial gas sales
This workover would restore gas production capacity and improve overall lease economics by supporting critical infrastructure operations.
SUMMARY
✓ January Production: 1,205.15 barrels oil (906.81 sold)
✓ Daily Rate: ~39 BOPD average
✓ Operational Challenges: Multiple power outages reduced production ~60%
✓ Production Restored: Fully operational as of January 28th
✓ Upcoming Work: Well #41 operations (early Feb) + Well #54 AFE proposal
✓ Strategic Initiative: Gas production restoration to support lease operations
Despite significant infrastructure challenges in January, the Parker Fee oilfield has returned to full operational status and is positioned for improved performance in February.
UPCOMING COMMUNICATIONS
Our next investor portal update will be released on March 12th, 2026 (US time).
Best regards,
