Valued Partners,
The ASE 1's gas production for the next round of revenue disbursements was 5,947 MCF. This will be the fifth revenue disbursement paid to Phase I investors, and the consistent decline in gas production means we are getting closer to being able to see this well enter into its oil production phase.
On Tuesday, our team logged and perforated the ASE 4 well, and prepared the location for Quasar, who has been engaged to perform the sand stimulation on the ASE 4 as well as all of the other Seminole County ASE wells. Deane Pearce, one of our registered petroleum engineers, was on location taking video footage for our investor partners. Dean explained that the perforating company had to double-check if we needed a 20 ft. perforation gun, as they have not supplied one this long in several years. This, yet again, is confirmation of the incredible thickness of the formation we have proven beneath our Seminole County lease, especially when compared to most other wells in the area!
For your reference, a perforation gun is a tool used to punch holes into the casing that connects the well bore to the oil & gas formation.
On Wednesday, we completed the sand stimulation/frac on the ASE 4 well. Technically the operation could not have gone any better, with reports showing that the reservoir broke down at less pressure than expected, and in addition, the zone took the stimulant fluids at a much higher rate than anticipated. Once again, these are both great signs at this stage of the completion process.
We would like to thank all of the on-site team for their stellar efforts, especially during the past few days. Due to inclement weather and the lease's low-lying location, most of the lease has been waterlogged, which turned into thick mud. We had a small window to setup and complete this process, as there are five days of rain predicted to fall in Seminole. Despite the odds and elements being against them, our team accomplished a picture-perfect operation to ensure we minimize any further delays.
The well is now shut-in for 24 hours and swabbing the well will commence, followed by 7-10 days of flowback, which will remove the bulk of the fluids used in the sand stimulation/frac process. Through flowback, we anticipate seeing an increased oil cut (to fluid ratio) as we will officially enter into the oil & gas production phase.
Based on the final analysis of the completion process and flowback we will then look to duplicate the process for the ASE 3, 2, and 1 wells.
