Dear Valued Investor Partners,
We hope this update finds you well. Below is a summary of the latest developments regarding the Phase 1 wells at Seminole County.
ASE 1 – Booch Formation Completion & Optimization
Challenges & Solutions:
- Over the past four weeks, our team has been systematically implementing various strategies to establish consistent production from the ASE 1 well.
- The well has intermittently produced oil and gas but experiences temporary shutdowns due to fluid entry challenges.
- We are actively exploring all possible solutions to optimize oil and gas production and establish a stable, continuous flow.
ASE 2 – Completion & Dual-Zone Production
February Sales & Revenue Allocation:
- Production Sales: Preliminary reports indicate 411 barrels of oil sold and 1,096 Mcf of natural gas transported via the sales line.
- Revenue Allocation: As per the Settlement Statement, there is zero income distribution to the Limited Partnership for this cycle.
- Capital Expenditure Offset: Production revenue is being allocated to cover capital expenditures related to the Phase 1 capital call, which funded the recompletion of ASE 1 in the Booch Formation and ASE 2 in the Woodford Shale Formation.
Solution Focused Strategy:
- Our on-site team is diligently implementing systematic solutions to address fluid entry challenges, which have led to increased costs.
- Despite these hurdles, we remain confident in successfully resolving ASE 1’s production issues in a timely manner.
- We are encouraged by the strong initial oil and gas output from ASE 2 and look forward to further optimizing its performance.
Further updates will be provided in our next portal, scheduled for release on the last day of the first week of the month.
Best regards,
The ASE Team
