Dear Valued Investor Partners,
We hope this update finds you well. Please find below your October 2026 update for the ASE 3 well.
ASE 3, OCTOBER 2026
Status: Producing
- Total oil produced: 242.56 barrels
- Oil sales: 202.53 barrels
THE ASE 3 WELL AND THE WATERFLOOD
- Production is declining: as the gas pressure in the Booch drops, the drive that pushes oil to the wellbore drops with it, and production from the ASE 3 well is now starting to decline.
- Re-fracturing is not an option: the well has already been fracked twice, so a further frac is not a viable solution.
- The only logical solution: our geologists have confirmed there is still substantial oil and gas surrounding the ASE 3 well. The way to recover it is to increase reservoir pressure, and that is achieved by injecting water.
- The ERI well: we now expect the ASE 3 well to be confirmed as the enhanced recovery injection well (ERI well).
- How you benefit: the Booch wells would be unitized, so the oil produced across the unit is shared with the investors who hold ownership in its wells. We believe this is the quickest way for Seminole County Phase 2 investors to return to revenue, with access to both primary and secondary reserves.
WHY THE WATERFLOOD IS SUCH A POSITIVE STEP
As explained in our previous portal, a waterflood restores reservoir pressure, increases primary production and unlocks the secondary reserves. The results speak for themselves:
- U.S. Department of Energy: a waterflood can double, if not quadruple, the oil recovered from a reservoir, lifting recovery from around 10% under primary production to between 20% and 40%.
- Pleasant Mound Cleveland Sand Unit, Oklahoma: monthly oil production more than tripled once the waterflood response arrived.
Anticipated waterflood timeline
- By the end of 2026: permit applications filed with the OCC, engineering sign-off, and the ASE 3 well approved as the enhanced recovery injection well (ERI well).
- January 2027: the ASE 3 well converted, with first water injected into the Booch formation.
- February to May 2027: reservoir fill-up of approximately 60 to 120 days, as the injected water restores pressure.
- Once fill-up is complete: the waterflood takes effect, with an increasing amount of oil and gas anticipated.
All dates are anticipated and may change with regulatory approvals and operating conditions.
We appreciate you may have lots of questions, and this is understandable. Yet this is all the information we are able to provide at this stage. We will share further detail in future portal updates as each milestone is reached.
As always, your monthly financial statement is available through your investor account portal.
Our next scheduled investor portal update will be released on December 11th, 2026.
Best regards,
THE ASE TEAM
