Dear Valued Investor Partners,
We hope this update finds you well. Please find below your July 2026 operational update for the ASE 4 well.
OPERATIONS UPDATE, JULY 2026
Status: Shut in, development options under evaluation
As reported last month, we continue to explore the completion of the previously drilled but uncompleted Lois #1, located in the NE/4 SE/4 of Section 1, to the south of the ASE 4 and the Oddfellows lease. If the Lois #1 can be completed as a saltwater disposal well, the ASE 4 can offload its produced water to the Lois #1 and be tested in the Hunton formation again. The Hunton was previously contributing gas in the ASE 4 along with a substantial amount of water, and with dedicated disposal capacity in place, the ASE 4 has the potential to produce gas and oil.
This approach would return the ASE 4 to production rather than converting it to disposal, which we believe represents the better outcome for Phase 3 investors, and it remains our preferred path.
The existing application to convert the ASE 4 itself into a saltwater disposal well remains open with the Oklahoma Corporation Commission, and it has deliberately been placed on pause while we pursue the Lois #1. Keeping that application open means the ASE 4 stays available as the disposal option in the alternative, so the field has a clear path forward either way.
COMING UP, AUGUST 2026
Last month we reported that the Lois #1 disposal permit application had been accepted by the OCC and that permitting was ongoing. That process has since advanced well. The application is now with the underground injection control reviewer at the OCC, the surface use agreement with the landowner has been acquired, and approval is expected imminently.
Our next scheduled investor portal update will be released on or before September 11th, 2026.
Best regards,
THE ASE TEAM
