Valued Partners,
As we prepare for the ASE 1 well's dual-zone completion and sand stimulation, the ASE 2 has continued to dewater, with its pumpjack consistently removing stimulation fluid/load water while also producing (at this early stage) substantial volumes of oil.
Regarding the disposal of the stimulation fluid and water, we are pleased to announce that we have exclusive access to two saltwater disposal wells that are located only a short distance away from our lease, thus allowing us to reduce disposal costs by approximately 45%.
Here is a summary of all other Seminole County project developments:
As stated in previous updates, the ASE 4 faced an issue of oil returning through the annulus and consequently “choking” the attached generator. As you will see in the video below, we have acquired several horizontal separators, which can process a larger volume of fluid than the previously installed vertical separators. Since installing one of these new units on the ASE 4, the well has continued to flow without disruption.
The ASE 3 has had rods and tubing installed in the wellbore and our operations team is waiting for a larger pumping unit to be delivered, which they expect will be able to accommodate the output of the well. If there are no delays in the delivery of the pumping unit, our team expects the well to be in its production phase next week.
We are pleased to report that the Lois 1's road construction has commenced, and once the road and drilling pad have been completed, we will immediately start the rig mobilization, in preparation for the drilling operation to begin.
