Dear Valued Investor Partners,
We hope this update finds you well.
Please find below your August 2026 operational update for the Lois #1 SWD (saltwater disposal well).
OPERATIONS UPDATE, AUGUST 2026
Status: In principle full approval received, well transfer paperwork being finalised by the OCC
We are very pleased to report a major step forward on the Lois #1 this month. We have received in principle full approval of the permit from the Oklahoma Corporation Commission, and the Commission is now completing the well transfer paperwork.
Base of Treatable Water: Last month we explained that the Base of Treatable Water on record at the OCC for this well had moved, and that we had applied for a waiver to the resulting surface casing requirement. That matter has been resolved. FP Operations proposed a cement circulation procedure that accounts for the Base of Treatable Water level, and the OCC has reviewed that procedure and verbally approved it.
Regulatory progress: FP Operations has furnished the OCC with all required documents, the well has been through final review at the Underground Injection Control department, and full approval has been received in principle. The OCC is finalising the well transfer paperwork, which is the last administrative item before the permit is issued.
Preparation for approval: Preparations are complete so that work can commence as soon as the permit is issued.
The Lois #1 remains the single most important piece of infrastructure in the Seminole County field. It unlocks the ASE 1, the ASE 4, the completion of the Lois Anne #3-1, the re-opening of the Wilcox in the Lois Anne #1-1, and the economics of the Hunton formation across the lease.
COMING UP, SEPTEMBER 2026
We are awaiting the issue of the permit following completion of the OCC's administrative paperwork. Preparations are complete so that the work can proceed without delay once the permit is in hand.
Our Senior Partner, Grant McLoughlin, is booked to return to the US on 6 October for a two week trip. During that time we are confident that we will have commenced the Lois #1 saltwater disposal well conversion process.
Our next scheduled investor portal update will be released on October 12th, 2026.
Best regards,
THE ASE TEAM
