Valued Partners,
Per our portal update on the 13th of May, we are posting updates on a monthly basis, unless there is some information of importance, hence why you are reading this portal update today. Our strategy (as outlined in our previous update) is to focus on the ASE 4, design and conduct the acid stimulation, while testing the ASE 1 & ASE 2 wells, then monitor the ASE 4's production, followed by undertaking the acid stimulation on the ASE 3, then ASE 2 and then ASE 1. Because of this strategy, all Phase 1 investors have an interest in being kept in the loop regarding the ASE 4 and ASE 3 well's progression. So here is the latest update from Wayne Beninger who is taking lead on the testing and acid stimulation procedures for all Seminole County wells.
After the ASE 4 was shut-in for the pressure buildup test, the well was immediately put back into production, and the volume of oil and gas doubled in comparison to before the well was shut-in. The ASE 3 was shut-in and the same test was conducted. Over the slightly short timeframe the gas production doubled and the oil volume spiked to 20 barrels in one day.
To improve the rate from both wells we have designed an acid stimulation that we expect will clean out the fracture created by the sand stimulation that was done earlier and opens up pathways in the rock matrix for the oil to get to the well bore more easily. The acid stimulation is expected to take place at some point in the next 2-3 weeks. We expect rates to improve in each of the wells to as much as 40 bopd with a corresponding increase of gas. The ASE 4 will be first and the stimulation design will be adjusted if needed before doing the ASE 3. The results of these first two wells will inform the design for the acid stimulation of the ASE 1 and 2 wells.
