Valued Partners,
A very happy New Year to all of the Alpha Seven Energy Investor Partners.
In the past 72 hours, the ASE 3 has seen a spike in production, with each day seeing increased rates of production. We believe this is due to the installation of the new downhole pump.
This week our team has completed thorough testing and analysis on all of the ASE wells (1-4) and the results have shown that all of the pumps are working at only 25% efficiency, this is due (in part) to gas interference. Over the coming week, our onsite crew will reposition each of the downhole pumps (on all wells) to below 4,000 ft which should greatly increase the efficiency of each well and thus translate into improved oil production.
Wayne Beninger (Geologist and Petroleum Engineer) has written a technical report outlining some of the findings for all of the current ASE wells, with one of the biggest takeaways being the confirmation of 6% (average) more oil in place. Please note, this is related to the Misener/Hunton formation in all ASE wells drilled. Please find his report link below.
Below is a summary of all other Seminole County project developments.
The ASE 1 (to date) has removed approximately 80% of the stimulation fluid. Our team is closely monitoring the well and has conducted multiple tests.
In the month of December, the ASE 2 well has produced its highest volume of oil. Once again this reinforces what our team of petroleum engineers and geologists have stated in previous portal updates, that as we progress through the dewatering phase, both the oil cut and oil production rates should continue to improve.
Over the past 8 days, the ASE 4 has reported a slow, yet steady improvement in oil production, with the 14th of January producing its highest single-day volume of oil.
In our continued commitment to ensuring each well is performing at its optimal rate and producing the oil volumes which our logs, tests and core samples show, our operations team has now employed an on-site crew member, whose main role is to take daily pressure tests of each well. Every day this data will be analysed by Wayne Beninger, who will be utilizing this information to make key decisions on how to make further improvements on a per well basis.
Our Petroleum Engineer Deane Pearce & Wayne Beninger have completed their analysis of the Lois 1 log. The current strategy is to not co-mingle with the Booch and perforate the top section of the Misener/Hunton formation with the intention of fracturing (in part) the Woodford Shale which is just above our primary zone. The logs show that the Woodford shale is oil-rich, so this should assist in maximising oil production from the wellbore. We are now waiting for the time when Yellow Jacket can come and conduct the completion process.
On Thursday of this week, our team took delivery of the cattle guard and gate which is a requirement of the landowner to enter his property, and we are currently in the installation process, as well as making all of the required road preparations. Once completed, we can then commence the rig move to the Lois 2 drilling pad.
Based on the test results/findings from Wayne Beninger, we now have a better understanding of the Misener/Hunton formation. This newly found information will greatly benefit all ASE wells, especially wells not yet drilled. Unfortunately, the majority of the delays have been out of our control, yet with that being said as we get closer to unlocking the key to maximising the Misener/Hunton key oil production, the higher the oil prices seem to be. We feel extremely confident that we will get all of the current and future wells into peak production while oil prices are high, and thus assist in offsetting any time delays experienced in the past.
Seminole Well Report
