Dear Valued Investor Partners,
We hope this update finds you well.
Below is a summary of recent developments regarding our Phase 1 wells at the Seminole County oilfield.
ASE 1 WELL – CURRENTLY OFFLINE
The ASE 1 well continues to experience fluid entry issues similar to those we have recently encountered with the ASE 4 well. This Wednesday, we will be testing a solution that involves installing a compressor unit at the ASE 4 wellhead to create vacuum conditions and relieve gas pressure from the wellbore.
We are cautiously optimistic this approach will yield positive results, and if successful, we will implement the same process on the ASE 1 well.
ASE 2 WELL – ONLINE AND PRODUCING
May 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.
ALPHA SEVEN ENERGY INVESTMENT PORTAL
Last week, we initiated our phased rollout of the new investment portal to a limited number of ASE investors. This approach allows us to identify and resolve any technical issues before the full-scale launch to all investors.
TAX DOCUMENTATION UPDATE
We have received confirmation from our accounting team that K-1 forms will be completed and filed within the next 3-4 weeks.
UPCOMING COMMUNICATIONS
Our next investor portal update will be released on Thursday, July 10th (US time).
Best regards,
THE ASE TEAM
