Dear Valued Investor Partners,
We hope this update finds you well.
Below is a summary of recent developments regarding the Phase 1 wells at the Seminole County oilfield.
ASE 1 WELL – OFFLINE
Following our previous attempts with compressor units to resolve the fluid entry challenge, the well remains shut-in. We are currently evaluating the opportunity to recomplete in the Woodford formation, similar to our successful approach with the ASE 2 well. John Downs, our geologist, along with our key technical personnel, unanimously agree this represents the best course of action. Based on superior log data and geological positioning, there is a strong likelihood that ASE 1 could yield even better results than ASE 2.
Our technical team will now finalize the AFE (Authorization for Expenditure) for the Woodford formation completion
The timing for this recompletion process is pending the required capital funding and final scheduling.
ASE 2 WELL – June Production Performance:
Recent Equipment Upgrades: The original pumping unit experienced mechanical failure due to worn bearings and gearbox components. We replaced it with a new unit featuring an 86-inch stroke length, which is better suited for this well's production profile. The new unit will reduce wear on downhole equipment while maintaining current production rates.
Tank Battery Improvements: We have upgraded the separation system by replacing the 3-phase knockout with a 2-phase knockout and installing a 4x20' gun barrel. This configuration prevents cross-contamination between oil and water tanks by allowing gas to separate into the sales line first, then providing extended settling time for proper oil-water displacement before reaching the storage tanks.
Future Production Strategy: Analysis indicates strong potential for fracturing the Woodford Shale formation, which could deliver meaningful increases in daily production volumes. Our immediate focus remains on current pumping operations while ensuring recovery of recently deployed capital.
ASE NEW INVESTOR PORTFOLIO MANAGEMENT PLATFORM
Moving forward, all monthly statements will be accessible through our new Investment Portfolio Platform. If you have not yet received your registration email, your Limited Partnership is next in our setup queue, with registration emails being sent on a rolling basis. All remaining registrations are expected to be sent by August 18th.
For any questions or assistance with platform access, please contact Claudia Van Brugge at claudia.v@alphasevenenergy.com.
TAX DOCUMENTATION UPDATE
Over the past week, we have begun receiving K-1 forms for each Limited Partnership. Peter, our CFO, is currently conducting comprehensive cross-checking procedures to ensure complete accuracy. We estimate all K-1 forms will be finalized within the next two weeks. We apologize for the delay and any inconvenience this may have caused, and we are implementing measures to ensure next year's K-1 forms are completed on schedule.
UPCOMING COMMUNICATIONS
Our next investor portal update will be released on August 11th (US time).
Best regards,
THE ASE TEAM
