Dear Valued Investor Partners,
We hope this message finds you well.
Seismic Survey Update
The planned seismic survey has encountered complications. The survey provider has revised its pricing to nearly double the original quote, and the logistics of completing the survey on our acreage have proven very difficult. As a result, we are reassessing the most practical and cost effective path forward on this front.
ASE 4 Well: A Potential Change in Strategy
There is, however, significant positive news. The recent drilling of the Lois Anne 4-1 encountered the thickest continuous Booch formation we have seen anywhere on the field to date. Following this result, our geologist John Dowds reviewed additional well logs across the field, including the ASE 4, and has identified the potential for the ASE 4 to produce commercial quantities of oil and gas.
As you know, our original plan was to convert the ASE 4 into a saltwater disposal well. Based on this new geological review, that plan is now under reconsideration. For the ASE 4 to be commercially viable, we need a cost effective method of removing water from the wellbore. This would allow us to open up the formations to their maximum potential and potentially install a submersible pump. If we proceed down this path, we would select an alternative location for the saltwater disposal well.
What This Means for the Project
We understand that these changes to our strategy, and the delays that come with them, may be frustrating. Our main priority, as it has always been, is to maximise value for our investor partners. If the ASE 4 has genuine potential as a commercial oil and gas producer, it makes far more sense to preserve it as a producing asset and convert another well for saltwater disposal.
This is all the information we can share at this stage. We expect to provide additional insights and updates in the next portal update.
THE ASE TEAM
