Dear Valued Investor Partners,
We hope this update finds you well. Please find below your July 2026 operational update for the ASE 3 well.
OPERATIONS UPDATE, JULY 2026
Status: Producing
July was a month of significant hands-on work on the ASE 3, and we are pleased to report that the well is back online with the underlying cause properly identified and resolved.
The well was producing approximately 14 to 15 barrels of oil per day when it lost pump action mid-month. The pump was pulled and sent to the shop for repair, and a new 1-1/2 pump was run in its place. Inspection of the original pump showed sand buildup. Approximately 72 hours after returning to production, the well lost pump action a second time. The pump was pulled again, and more sand was found.
Rather than simply repeat the repair, the team tagged bottom with tubing and established that there was an estimated 40 feet of sand fill in the wellbore. The St. Louis rig and HOTCO were brought in to bail the sand out. It took 5 days of bailing before sand stopped entering the wellbore, and inspection confirmed that this is formation sand rather than frac sand, which tells us clearly what we are dealing with going forward.
The well has been returned to production and is making load water from the bail job together with an oil cut.
Surface work was also completed this month. The welding crew repaired the weld on the engine mount, and new gravel was added under the base to replace rock that had washed out. The engine is running smoothly following the repair.
PRODUCTION, JULY 2026
Total oil produced: 153.64 barrels, preliminary
Oil sales: 493.18 barrels
Total water produced: nil recorded
COMING UP, AUGUST 2026
The well is back online and will be monitored closely following the sand cleanout. Final production figures for July will be confirmed once the tank bottoms have been pulled.
As always, your monthly financial statement is available through your investor account portal.
Our next scheduled investor portal update will be released on or before September 11th, 2026.
Best regards,
THE ASE TEAM
