Dear Valued Investor Partners,
We hope this update finds you well.
We apologize for the delay in providing this progress update. Moving forward, we aim to deliver comprehensive and timely updates through these investor portals (1 per month).
ASE 1 – Booch Formation Completion & Optimization
- Strategic Shift:
- Initially planned for the Woodford Formation, but after analyzing new data and the success of the ASE-3 stimulation in the Booch Formation, we made a decision to target the Booch Formation.
- Perforation & Flowback:
- Successfully perforated the Booch Formation.
- During flowback, we removed approximately 450 barrels of load water.
- Challenges & Solutions:
- The well has encountered gas locking and sand buildup in the mud anchor.
- This week, the anchor issue was resolved, and our team is now focusing on gas line upgrades to prevent future gas-locking and allow the well to flow effectively.
- Gas Line Infrastructure Improvements:
- Due to higher-than-expected gas volumes from the Seminole County Wells, necessary infrastructure modifications are underway.
- A three-to-four-day re-plumbing process is being conducted to eliminate gas restrictions and improve overall performance of this well and other wells.
- Well Performance & Outlook:
- A promising sign is the current well pressure which is ranging from 380-390 PSI, with occasional spikes up to 600 PSI, signaling high energy.
- Our contract operator is confident that once the gas line modifications are complete, the ASE 1 well will successfully unload and perform optimally, contributing significantly to production.
ASE 2 – Completion & Dual-Zone Production
- Completion & Initial Production:
- After completing ASE 1, our team successfully finished the ASE 2 completion in the Woodford Shale, following the planned process.
- Equipment Challenges & Resolution:
- During flowback, the gas-powered engine failed and required repairs.
- The engine has been fully repaired and reinstalled, and is now ready for operation.
- Next Steps & Production Outlook:
- Once the gas line upgrades are finished, we will resume ASE 2 operations to remove any remaining load water and return the well to production.
- ASE 2 is a dual-production well, capable of producing from both the Woodford Shale and the Hunton Formation, thereby maximizing long-term production potential.
- Optimism & Investor Confidence:
- Our on-site team remains optimistic about successfully and promptly resolving the remaining issues.
- We are excited to bring both wells into full production and will continue to provide updates in the next portal.
Best regards,
The ASE Team
