Valued Partners,
Per our strategy, which was outlined in previous portal updates, we thought all Phase 2 investors would appreciate a progress report on the ASE 4's acid stimulation. We are pleased to report that the acid stimulation was completed ahead of schedule, and by all reports it went perfectly to plan. On Friday the 1st of July, the stimulation was conducted as designed with several occurrences of pressure buildup (as high as approximately 3,400 psi) that subsequently broke back to approximately 2,100 psi. Barriers to the movement of the acid account for the pressure increases that are then overcome. It is thought that the barriers are restrictions caused by partial plugging of the induced fractures that were created by the earlier sand stimulation. The restrictions, or barriers, were most probably caused by fine particles of the matrix that are concentrated within the fracture which occurred during production.
In order to increase the rate from the Misener/Hunton zone in the Seminole County wells, Wayne Beninger and the team chose the ASE #4 well to stimulate with a large acid injection. During the 1-day operation Quasar injected 950 bbls of 15% HCl (hydrochloric acid) followed by 950 bbls of KCl water flush. The injection rate for both stages was approximately 20 barrels of fluid per minute (bpm). The action of the acid was slowed down (retarded) by gelling the fluid, so to ensure that the acid penetrated far enough into the existing fracture and surrounding matrix before being "spent." In more simple terms, we wanted the acid to still able to dissolve the carbonate matrix after it was injected deep into the formation. The KCl (potassium chloride) water flush was used to continue pushing the acid into the formation while the KCl in the flush prevents damage to the formation itself.
Currently, the well is being swabbed to recover the injected KCl and spent acid. As of the 8th of July, the daily volume is approximately 60 barrels within an 8-hour period (a rate of about 180 barrels per day). During (and in between) each swab run, the well is producing gas along with the water. The plan is to put the ASE 4 well back onto its pumpjack when the fluids no longer carry solids that would damage the pump. Wayne has stated that he expects the ASE #4 well to cleanup in a manner similar to the ASE #2, but at a higher rate. Please note, due to the larger than expected volumes of acid and KCI used, it may take several weeks before seeing increases in the oil cut.
Based on the success of the ASE #4 well's acid stimulation, it is our strategy to then duplicate this process (potentially with some minor adjustments) on the ASE 3, 2, and 1 wells.
