We hope this update finds you well.
Here is the latest update regarding Seminole County Phase 1, covering operational progress achieved during January 2026.
Current Status: Temporarily shut-in, awaiting SWD operational status
Once the saltwater disposal well is operational, the ASE-1 well will be brought into production, commingled with 2, potentially 3 formations.
Historical testing of the Hunton formation in ASE-1 showed flow rates of approximately 300 barrels of fluid per day with an sizable oil cut. This high fluid volume (primarily water) made the well uneconomic without disposal capability.
Anticipated Timeline: ASE-1 represents significant production addition within 2-3 months once the SWD is commissioned (anticipated 6-8 weeks from today).
The permit application has been submitted to the Oklahoma Corporation Commission's Underground Injection Control (UIC) Department.
Current Status: The permit application is under active review. Based on typical UIC permit processing timelines, we anticipate permit approval within the next 4-6 weeks.
Post-Approval Operations: Once permitted, conversion operations (perforation, testing, and commissioning) will commence within 2-3 weeks.
January 2026 Production Results:
The ASE-2 well continues to run smoothly with very few operational issues throughout January. Production has stabilized at consistent rates, and the well requires minimal maintenance.
Our next investor portal update will be released on March 12th, 2026 (US time).
Best regards,
