Dear Valued Investor Partners,
We hope this update finds you well.
Well Status: Shut-in during November, proposed conversion to saltwater disposal (SWD) well advancing.
Application Status:
Comprehensive Documentation Submitted to UIC:
Once operational, the ASE 4 saltwater disposal well will handle lease water from multiple ASE wells, transforming previously uneconomical water-bearing formations into profitable production zones across our entire Seminole County operation.
This strategic conversion creates a distinctive and valuable income stream for Phase 3 investors:
As additional wells are drilled across the ASE Oddfellows oilfield and water production increases, disposal volumes and revenue will grow accordingly, creating an appreciating asset over time.
Unlike oil and gas production, disposal well revenue is based on water volumes, not commodity prices, providing income stability regardless of oil and gas market fluctuations.
Water disposal wells do not experience the natural production decline curve typical of hydrocarbon-producing wells, offering more predictable and sustained long-term cash flow.
The ASE 4 disposal well serves the entire field development, meaning every new well drilled in the area contributes to increased disposal revenue for Phase 3 investors.
Next Steps: We await final permit approval from the OCC to commence conversion operations and bring this strategic disposal facility online.
Best regards,
THE ASE TEAM
