Valued Partners,
Phase I investors were allocated their 4th gas revenue disbursement this week, with an approximate 20% increase in their payment size. This was due to a marginal increase in gas production (total of 8,212 MCF) and an increase in the price of natural gas, which rose by well over 40 cents per MCF.
This week we finalized the precise hydraulic fracture design, and Deane Pierce (a registered Petroleum Engineer) has recorded a short video to explain the basics of the design and the process. During this six-minute video, Deane stated that based on this type of fracture height and length, we will see a tremendous amount of oil come back.
Out of a shortlist of five service providers, we are pleased to announce that we have selected Quasar Energy Services to conduct the hydraulic fracturing of all ASE wells on our Seminole County lease. Quasar was booked to commence their operations at midday on Friday the 30th of April, but due to heavy rainfall, operations will likely be delayed until next week. On the recommendations of our petroleum engineers and geologists, the ASE 4 well will be the first to undergo the fracturing procedure. This is due to the detailed analysis of the 45 ft. Misener/Hunton core sample. The fracturing of each well is estimated to take one day to complete, and it is our intention to then repeat the process for the ASE 2, the ASE 3, and (once gas production declines) the ASE 1.
We can also confirm that we will be utilizing cutting edge nanotechnology in the hydraulic fracturing process (nanoActive EFT) which will greatly assist in enhancing the total hydrocarbon recovery. Here is a link to a short two-minute video that explains this technology in more detail.https://nanoactiv.com/products/nanoactiv-eft
Wayne Beninger (Geologist & Petroleum Engineer) has recorded a five-minute video that takes a close-up look at the Misener/Hunton core samples, speaking about the vugs and utilizing the nanotechnology.
Additionally, here is the latest video update from our operations team as they prepare to begin fracking the ASE 4.
