Dear Valued Investor Partners,
We hope this update finds you well.
This portal release covers significant operational activity at this well over recent weeks and its current status.
ASE #3
Status: Post-Fracture Stimulation — Load Water Recovery Underway
Why We Acted
Over the preceding months, production at the ASE #3 had declined considerably. After consulting with our geologist John Dowds, he recommended a repeat fracture stimulation of the Booch formation — the same approach successfully carried out in November 2024. We made the decision to invest in this treatment because we believe there is significantly more oil and gas to be recovered from the Booch formation, and potentially from other formations at a later stage. We also believe this is the most effective way to accelerate the timeline to oil and gas revenue for investors.
The Fracture Stimulation
Over a two-day period commencing March 24th, the well underwent an acid fracture stimulation treatment. Approximately 1,150 barrels of fluid and 39,000 pounds of sand and proppant were pumped to fracture additional surface area within the Booch rock and access further recoverable reserves. Engineering calculations completed for an increased density hearing identified approximately 38,000 barrels of additional recoverable oil from this wellbore. It is worth noting that these calculations are typically conservative in nature and do not incorporate the natural gas component, which this well has produced in large quantities.
To keep costs down, rather than retaining an additional workover crew, the decision was made to return the well to pump following the treatment. Unfortunately the well subsequently clogged with sand, which required the rig to return to clean out the wellbore. The team bailed approximately 44 feet of fill and redressed the pump, setting a new bottom depth of approximately 3,379 feet — providing around 30 feet of rat hole beneath the mud anchor, which gives the well good operating conditions going forward.
Current Status
The well returned to pumping on April 8th. As expected following a fracture stimulation of this scale, the well is currently in the process of recovering approximately 1,100 barrels of load water used during the frac job. This is a normal part of the post-frac process and must be completed before meaningful oil production volumes are observed.
Early indicators are encouraging:
COMING UP
The well will continue to recover load water over the coming days. As the water volumes clear and the oil cut increases, we will have a clearer picture of the frac results. We will issue an additional update once meaningful production data is available. We appreciate your patience during this recovery phase and remain confident in the decision to invest in this treatment.
As always, your monthly financial statement is available through your investor account portal.
Our next investor portal update will be released on or before May 12th, 2026, with an additional update to follow once post-frac production results are confirmed.
Best regards,
THE ASE TEAM
