Dear Valued Investor Partners,
We hope this update finds you well.
Operations update, September 2026: ASE 2
Status: Producing
The ASE 2 continues to be one of the most reliable performers in the field, running smoothly throughout September.
Operations update, September 2026: ASE 1
Status: Temporarily shut in
As stated in past portals, the ASE 1 well has three oil zones open in the wellbore, including the Hunton formation, where the most recent test showed a flow rate of approximately 300 barrels of fluid per day with an oil cut.
Historically, the Hunton has produced large volumes of water in this well. A cost-effective way of handling that water is therefore the key to bringing the ASE 1 back into profitable production.
Revenue and the path back to distributions
We appreciate that everyone within the Seminole County Phase 1 LP has been patiently waiting for monthly distributions to recommence. The wells continue to generate revenue and, as you are aware, that revenue is currently paying back the expenditure on the work carried out on the wells.
As production naturally declines with reservoir pressure, we believe the waterflood is the best option to get investors back into revenue sooner.
Fast-tracking our waterflood implementation
Our intention was to convert the Lois #1 well into an SWD (saltwater disposal well). To date, we have not been able to reach commercial terms with the landowner of the southern section of our lease, which contains the Lois #1 well.
As a result, we are looking to fast-track our waterflood implementation across the ASE Oddfellows Oilfield. This was always part of our plan, yet it was not expected to begin for at least another 12 months.
A waterflood does more than dispose of water; it puts the water to work. Water is injected into the formation through one or more enhanced recovery injection wells (ERI wells), pushing oil and gas towards the surrounding producing wells. It is a proven method of extracting not only the primary oil reserves, but also the secondary reserves that would otherwise remain in the ground.
The Booch formation has no water, which makes it the perfect candidate for a waterflood. We would also potentially look to waterflood the Hunton formation.
The role of the ASE 1 and the ASE 2 in the waterflood
We have engaged an engineer to carry out a full waterflood study and engineering report, which will determine the role that delivers the strongest result for each well.
ASE 1: the waterflood may benefit production from the ASE 1. The options being evaluated are:
ASE 2: this well produces from the Woodford and Hunton formations. As the waterflood will initially focus on the Booch formation, the ASE 2 is not expected to benefit from it in this first phase. In the medium term, we may also look to waterflood the Hunton formation, which would potentially benefit the ASE 2.
A cost-effective way of managing water
An ERI well can take large volumes of water. This gives us a cost-effective way of managing the water produced across the field, allowing us to open up zones with a high ratio of water to oil.
In turn, this allows production to recommence in wells that were once not commercially viable, because of the large volumes of water they produce and the high cost of disposing of that water, including trucking costs.
Most importantly, we will only proceed with the waterflood once our engineers have confirmed the plan, and we have a very high level of confidence that it will benefit our investors.
Next steps
Looking ahead
We are excited about what the waterflood can deliver, and we see this as a very positive step forward. We understand you may have some questions, yet this is all the information we have at the moment.
Our Senior Partner, Grant McLoughlin, is currently in the US, working closely with our operations team on the Seminole County field, with the focus on maximising production and advancing the water handling solution for the lease.
As always, your monthly financial statement is available through your investor account portal.
Thank you in advance for your patience. The next update will be released on November 12th, 2026.
Best regards,
THE ASE TEAM
