Dear Valued Investor Partners,
We hope this update finds you well.
Operations update, September 2026
Status: Producing
The ASE 3 ran smoothly throughout September, and it remains the best performing well in the field.
Revenue and the path back to distributions
We appreciate that everyone within the Seminole County Phase 2 LP has been patiently waiting for monthly distributions to recommence. The well continues to generate revenue and, as you are aware, that revenue is currently paying back the expenditure on the work carried out on the well.
As production from the Booch naturally declines with reservoir pressure, we believe the waterflood is the best option to get investors back into revenue sooner.
Our strategy for the ASE Oddfellows Oilfield
Across the ASE Oddfellows Oilfield as a whole, our strategy is to extract the maximum amount of hydrocarbons from the ground, and in doing so to deliver the greatest possible value to our investors.
Part of that strategy was the conversion of the Lois #1 well into an SWD (saltwater disposal well), to handle the water produced across the field. To date, we have not been able to reach commercial terms with the landowner of the southern section of our lease, which contains the Lois #1 well.
As a result, we have been looking at alternative strategies, and we are looking to fast-track our waterflood implementation across the ASE Oddfellows Oilfield.
Why the Booch formation is a great candidate for a waterflood
Like all wells, the ASE 3 will see its production decline over time as reservoir pressure drops. The Booch formation has no water, so its production is driven by gas pressure, and as the gas drops off, production drops with it.
A waterflood restores that pressure. Water is injected into the formation through one or more enhanced recovery injection wells (ERI wells), pushing oil and gas towards the surrounding producing wells. This enables us to extract more of the primary oil, as well as the secondary oil reserves that would otherwise remain beneath the ground.
The benefits of a waterflood
Our waterflood plan
We are currently engaging with our engineer to create a full waterflood plan and engineering report, which will confirm the exact well or wells to be converted into ERI wells.
Generally speaking, the well selected for injection is centrally located on the lease and has produced the most oil and gas. On that basis, the ASE 3 well could be a candidate for an ERI well.
Most importantly, we will only proceed with the waterflood once our engineers have confirmed the plan, and we have a very high level of confidence that it will benefit all investors.
Next steps
Looking ahead
We are excited about what the waterflood can deliver for the ASE 3 and the ASE Oddfellows Oilfield, and we see this as a very positive step forward. We understand you may have some questions, yet this is all the information we have at the moment.
Our Senior Partner, Grant McLoughlin, is currently in the US, working closely with our operations team on the Seminole County field, with the focus on maximising production and advancing the water handling solution for the lease.
As always, your monthly financial statement is available through your investor account portal.
Thank you in advance for your patience. The next update will be released on November 12th, 2026.
Best regards,
THE ASE TEAM
