Valued Partners,
We are very happy to report that next week (weather permitting) the rig mobilization equipment and team will be on-location to move and setup the rig at the Lois 1 drilling pad.
This week, ASE rig 3 (the BDW 650) received some welding work, and we received API certification on the repairs this afternoon. All permits are approved and as soon as the rig (derrick) is standing up, we will commence our pre-drilling safety check and begin spudding. All investors will have access to on-site cameras and will be given their own username and password to access Pason. For all investors who have not yet experienced an ASE well being drilled, Pason is a technology that allows one to see every foot of the drilling process (in real-time) until hitting our target depth (TD) of 4,300 ft.
Here is a summary of all other Seminole County project developments:
Our first well in Seminole County, the ASE 1, continues to produce commercial quantities of natural gas with investors due to receive their latest monthly revenue disbursement next week. The final sand stimulation design for the dual-completion of the Booch & Misener/Hunton formations has been completed and we are ready to commence the completion procedure in the coming weeks, followed by oil production.
The ASE 2 well has removed a significant portion of its load water, and the oil cut (ratio to water) is steadily improving. This week we completed our scope of work on the ASE 1 through 4 facilities, which includes setting-up and connecting the additional tank batteries, which will maximize our oil storage capabilities in order to handle increases in oil production over the next 2-3 months. Additionally, the ASE operations team has put each of the ASE wells (1 through 4) on their own individual separators and the oil is now being stored in their associated tank batteries.
We are extremely happy to disclose that all Phase 1 investors will be receiving their 1st monthly oil revenue disbursement on the 24th of September.
The ASE 3's original pumping unit was replaced with a massive 456 pumpjack, and the well has entered its production/flowback phase. We have attempted to capture the true scale of the pumpjack in the following video as it stands approximately 31 ft. high (D on the diagram below), and it is the largest pumpjack on the lease, if not the entire surrounding area.
Over the coming weeks, we will continue to remove load water used during the sand stimulation process, and see improvements to the oil cut. In just the past 24 hours we have seen steady increases in the oil-to-water ratio, which is an excellent sign at this early stage in the flowback/production phase.
We are very pleased to announce that all Phase 3 investors will be receiving their 1st monthly oil revenue disbursement on the 24th of September.
We are closely monitoring the performance of the PCP in comparison to a traditional pumpjack, and over the coming months, all wells will need to be continuously fine-tuned and dialed-in to optimize oil production. Our Petroleum Engineer, Deane Pierce, has suggested that we should reposition the PCP between the perforations, with the intentions of reducing gas volume and increasing oil production.
Wayne Beninger (Geologist & Petroleum Engineer) recorded a video explaining more about the Misener/Hunton formations and the timing to see de-watering and peak production.
https://youtu.be/4UKplxh-nXM
https://youtu.be/29OefPjOocA
