Dear Valued Investor Partners,
Below is a summary of the latest developments at the Parker Fee Project, including production updates, key investments, and upcoming plans.
November Revenue & Distribution Update
- As per the Settlement Statement (see below), there were no distributions to owners due to:
- Well Downtime & Repairs – One of the primary wells was offline for over two weeks, reducing total oil production by approximately 209 barrels.
- Capital Investments & Cost Deductions – Expenses related to:
- Water line installation and pump purchase.
- Workover costs, which were deducted from November's revenue.
- These expenditures are strategic investments aimed at:
- Improving lease efficiency.
- Reducing Operator Lease Operating Expenses (LOE).
- Maintaining oil production levels.
Operational Improvements & Cost Savings
- A new pump has been purchased and is scheduled for installation this weekend.
- Once operational, we will commence using the water transport pipeline, which is expected to save approximately $2,300 per month on water hauling costs.
Production & Well Deepening Plans
- January production remained stable, with a total of six loads sold, consistent with the previous six months.
- Well Deepening Project:
- We are working with Mr. Helton to assist with the procedure.
- The final planning phase is underway, with the goal of commencing the deepening process as soon as possible.
New Oil Purchaser
- Effective February 2nd, we have secured a new oil purchaser.
- This change is expected to increase revenue by an estimated $1.75 per barrel compared to the previous purchaser.
We appreciate your continued patience and support as we work to optimize production and maximize value. Further updates will be provided in our next month.
Best regards,
The ASE Team
