Valued Partners,
Over the last two weeks the ASE 3 well recorded back-to-back daily spikes in oil production, and the ASE 4 well was fairly consistent regarding oil volumes.
As stated in previous portal updates, we are focusing on the ASE 2 well regarding optimising production, and once achieved, we will conduct the same process on the ASE 3 & 4 wells, so each pump is operating at its highest efficiency, and thus each well is performing at its optimal rate of oil production.
Over the past two weeks we have met with more local production experts and they confirm our current assessment, which is that the gas is still an issue and the fluid level is still high in the annulus. As Wayne Beninger (Geologist) has repeatedly stated, we must continue to draw-down the fluid levels and keep them low while ensuring the gas is out of the way of the fluid. In summary, the standard operating methods have not produced the results we are striving for.
On Thursday this week we engaged with yet another industry expert who has well over 30 years of experience regarding Misener/Hunton wells and a great track record of improving oil production. We have and will continue to make adjustments to the backside pressure. With an echo meter, our team will take fluid levels every 3-4 days so we can continue to dial-in the well and optimise production.
Once completed, we will conduct the same process on the other ASE wells, so each pump is operating at its highest efficiency, and thus each well is performing at its optimal rate.
Since sending out the Alpha Seven Energy 2022 Strategy email on the 10th of February, we have been extremely busy dealing with investor questions and queries. We have spoken to almost 95% of our Seminole County investors over the past four weeks, and if anyone has any additional questions, please feel free to book a call/Zoom meeting with� McLoughlin by clicking here or alternatively, email at .m@alphasevenenergy.com.
Lastly, we thought investors might find this article of interest:
Goldman Sachs: Oil Prices To Average $135 Per Barrel This Year
Below is a summary of all other Seminole County project developments.
The ASE 1 well is extremely close to completing the flowback phase, and as the well de-waters, we saw the highest daily spike in oil production while still producing good quantities of natural gas.
Regarding the ASE 2 well, due to the difference in the measured oil production at the wellhead when compared to the volumes recorded at the tank batteries (oil storage facilities), our team has setup a temporary facility next to the ASE 2 well. This consists of installing an improved and more robust separator and hooking up two of our frac tanks, one of which will hold the collected water while the other tank stores the oil produced. Over the coming days, our team will monitor the oil volume and will be able to eliminate one of the possible reasons for the reduction of oil production at the tank batteries.
The final parts for ASE rig# 3 are due to be delivered in under two weeks. Once we receive these parts, our team will commence the installation process, safety checks, followed by the rig mobilisation to the Lois 2 location, which will then allow Yellow Jacket to perforate the Lois 1 well, followed by Quasar to complete the sand stimulation process. We already have the tank batteries and water tanks on-site, which will greatly assist to get the Lois 1 well online as promptly as possible.
The weather at Seminole County has started to improve and our team is ready to complete the final preparations for the rig mobilisation. As the Lois 2 is positioned on slightly higher ground, we do not foresee the same challenges we faced with the other ASE wells, such as getting stuck in the mud. Over the next 1.5 to 4 weeks we will start to see a lot more activity on-site, and as stated in other portals, our chief aim is to ensure each investor starts to receive oil and gas revenue as quickly as possible, and to take full advantage of high oil prices.
