Phase 3 (ASE 4)
Dear Investor Partners,
We hope this update finds you in good health and high spirits. We want to express our thanks and appreciation to all investor partners who have promptly paid their share of the legal fund. Your support is crucial as we provide you with the latest status on the ASE#3 well and the ongoing legal battle to regain control over your asset.
Recently, we received the ASE#3 well production report from the oil purchaser, and in May there was a significant quantity of oil picked up, totaling 4,892 barrels. Based on the average WTI for the month, this translates to an estimated income of over 350,000 USD. This is a frustrating, yet encouraging, development, as it underscores the potential of all of our ASE wells to produce similar volumes of oil based on the e-logs and cross-sections (blanket formations).
If all wells were to produce oil at similar rates as the ASE#3 well, we estimate that investors would recoup their legal fund invoices within approximately 1-2 weeks. This highlights the promising returns awaiting us once we regain control over your asset.
However, it is essential to note that the oil purchaser will continue buying the oil until we legally remove MXP as the operator. This highlights the criticality of our ongoing fight for justice and the urgent need to regain control over your asset. Many Seminole County investors have already paid their invoices, and we have promptly forwarded these funds to our attorneys. However, there are still outstanding amounts required for our attorneys' services.
In an act of desperation, MXP has resorted to selling the oil at a 10-15% discount, resulting in a sale of 274,444.19 USD. This discount has incentivized the oil purchaser to continue buying the oil, as they have received an additional $76,000 in revenue. This emphasizes the significance of our legal battle and the need to secure a favorable outcome.
We deeply appreciate everyone's unwavering support in this matter. To the outstanding investors who are yet to pay their legal fund contribution, we kindly request you confirm your support for the legal fight. Additionally, we would be grateful if you could provide us with an estimate of when you will be able to pay your outstanding invoices.
As we have mentioned in previous portal updates and email communications, we remain committed to addressing any questions or concerns you may have. Please feel free to reach out to us, and we will be more than happy to provide further details and clarification.
Thank you for your continued trust and support as we navigate this challenging situation.
Sincerely,
The Alpha Seven Energy team
