29th August 2024, Update

Dear Valued Investor Partners,

We hope this update on our Seminole County project finds you well.

Since regaining control of the asset, we have been diligently researching and collaborating with our new project geologist, who has provided encouraging insights. He believes there is a substantial presence of Woodford shale on our lease. Based on his experience with local wells of lesser formation thickness, which have averaged 40 barrels of oil per day (BOPD), this is promising news. It reinforces our belief that there are multiple hydrocarbon-rich pay zones beneath our Seminole County project. We are fully committed to maximizing the extraction of oil and gas and ensuring that each investor benefits from revenue contributions as promptly as possible.

^{Seminole County Project Plan:}

We are currently sharing all Seminole County-related updates through each of the project portals. Below is the basic plan for the Seminole project, which outlines the order of operations. Please note that this plan may be subject to change, and we will provide more detailed information as it becomes available.

1. ASE 3 (Phase 2) Well: Our priority is to restore consistent production and achieve the well's optimal daily output. The data we collect during this process will be invaluable in optimizing both the existing wells and those yet to be drilled.
2. ASE 1 & 2 Wells (Phase 1): Following ASE 3, the focus will shift to these wells to ensure they reach their full potential.
3. ASE 4 Well (Phase 3): This will be the next target for production enhancement.
4. Lois 1 Well (Phase 4): Completion of this well will follow the work on ASE 4.
5. Drilling Additional Partnership Wells: We will continue with the drilling of all other partnership wells, building on the data and success from previous phases.

^{ASE 3 Well Update:}

The ASE 3 well continues to experience gas-lock issues in the Booch formation. While this presents challenges for consistent production, it is also an indication of the significant gas reserves in this formation, which we can eventually monetize alongside the oil. On Monday, August 29th, our experienced team installed a compressor—after a three-week sourcing effort—to break up the gas blocking the wellbore. Unfortunately, this attempt was not successful.

On Wednesday, August 28th, we conducted a fluid level test to determine the height of the fluid in the wellbore from the Booch formation. The positive reading of 1,874 feet suggests that the well is not "pumping off." This could indicate a paraffin buildup. Our next step is to replace the current pump jacks with a smaller unit already on-site and to downsize the downhole pump from 2 inches to either 1.5 or 1.25 inches. We believe the current equipment may be too large, contributing to the ongoing issues.

We will provide another update once the ASE 3 is back in full production.

Thank you for your continued support and partnership.

Best regards,
The ASE Team