Dear Valued Investor Partners,
We hope you had a wonderful festive season and a Happy New Year!
In this portal, we are pleased to share the latest update on the Parker Fee Oilfield and provide insights into recent activities:
October Performance
- Oil Sales: A total of 1,124 barrels of oil were sold. For your convenience, the "October Settlement Statement" is attached below for your records.
- Net Revenue: The net revenue disbursements were slightly lower than normal, this was due to important operational investments and adjustments:
- Lease Operating Expenses (LOE): Significant improvements were made to water processing and transportation. A water pipeline was dug and laid, along with the installation of a pump to streamline water movement. These upgrades are projected to reduce LOE by $2,000–$3,000 per month, recouping the capital costs within a few months.
- Administration & LP Accounting Fee: This fee increased slightly to cover the preparation and filing of the LP tax return.
Production Update
Oil production remained relatively stable, with October`s output only 7 barrels lower than September, when 1,267 barrels were sold. Historically, occasional dips in monthly production volumes have been offset by subsequent increases in production rates, and we expect this trend to continue.
Future Upside Potential
It’s important to emphasize that the current production levels represent just a portion of the Parker Fee Oilfield’s value. The true potential lies in the planned deepening of the wells, which is targeted to begin in January or early February. This exciting scope of work is expected to unlock substantial additional value!
We greatly appreciate your continued trust and patience as we work diligently to maximize the potential of this valuable asset.
Best regards,
The Alpha Seven Energy Team
