Dear Valued Investor Partners,
We trust this message finds you in good health and high spirits after the holiday season and a very Happy New Year from the entire ASE team!
We are delighted to kick off 2024 with encouraging news that signals a positive trajectory for our Seminole County project and associated wells. We are optimistic that this development marks a significant step toward reclaiming control over our project.
On January 9th, 2024, Chris Hemsworth and ASE's legal representative, Mr. Ward (Attorney) attended our second court hearing at the Bankruptcy court in the Eastern District of Texas. We are pleased to inform you that the Judge has approved the majority of our requests. During this hearing, we were able to present compelling evidence, and Chris Hemsworth noted that the Judge now appears to have a deeper understanding of the situation, revealing a growing awareness of the truth behind the MXP smoke and mirror tactics.
To keep you informed, here is a comprehensive list of items that MXP/XP is required to provide, as per the judge's order:
Information Delivery Processes:
I) Electronically Stored Information (“ESI”)
1. All ESI programs used in any way by MXP will be identified in writing within 48 hours.
2. Process for data on Wolfpack software (the “Wolfpack Process”)
a. On or before January 16, 2024, all data of MXP on Wolfpack software will be downloaded by a third-party vendor agreed to by counsel for MXP and ASE (the “Wolfpack Download”) onto four electronic SSD hard drives. (the “Wolfpack Copies”). One of the copies shall be designated (the “Archive Drive”) and MXP’s counsel shall file the Archive Drive under seal with the Bankruptcy Court.
b. No party shall be allowed access to the Archive Drive after the creation of the Archive Drive without an order of the Bankruptcy Court.
c. On or before January 16, 2024, MXP shall take all steps to obtain rights for ASE to use Wolfpack software to access data stored on the Archive Drive Copies. ASE will pay Wolfpack for the license or rights to access the Wolfpack Copies that are requested by ASE.
3. For all ESI accessed or used by MXP that is not on a Wolfpack platform, the Wolfpack Process shall be followed and completed by January 16, 2024.
II) Non-ESI data
1. On or before January 16, 2024, any and all well information that is not contained in ESI shall be made available to ASE to copy, at ASE’s cost.
2. On or before January 16, 2024, unless delivered as ESI, copies of all bank statements shall be made available to ASE to copy, at ASE’s cost.
3. On or before January 23, 2024, all documents to which MXP and XP Operating, LLC are parties, regardless if other persons are also on the document, shall be made available to ASE to copy, at ASE’s cost.
4. On or before January 23, 2024, MXP shall make available to ASE to copy, at ASE’s cost, all records related to employees of MXP.
5. On or before January 23, 2024, MXP shall make available to ASE to copy, at ASE’s cost, all records, including IRS form 10099s, related to any independent contractors used by MXP.
Budget Process:
1. Fortnightly, starting on Friday, January 12, 2024, at noon and continuing thereafter on every 2nd Friday at noon, MXP shall submit to ASE by email a written budget (the “Fortnightly Work Budget”) listing any and all work that MXP believes should be performed on any oil and gas property. The Fortnightly Work Budget shall be itemized to separate each item of work with the charges that MXP proposes to pay. The Fortnightly Work Budget shall be accompanied by all data used by MXP to determine that the work should be performed. Without the accompanying data and explanation interpreting the data, MXP may not undertake any item on the Fortnightly Work Budget.
2. Every second Monday (or if Monday is a Federal Holiday, Tuesday) before noon Deane Pearce for MXP and Matt Burns or another person designated by ASE shall have a meeting (the “Fortnightly Work Budget Conference”) by phone or in person to discuss the items on the Fortnightly Work Budget. If MXP’s representative does not attend this meeting, no work on the Fortnightly Work Budget can be performed.
3. On or before noon of the second day after the Fortnightly Work Budget Conference, ASE, shall notify MXP by email of any item on the Fortnightly Work Budget that cannot be performed. If ASE does not deliver the Work Objection Notice all work on the Fortnightly Work Budget may be performed.
4. MXP may use cash collateral to pay for any and all items that are not listed on the Work Objection Notice.
5. If ASE delivers a Work Objection Notice, the MXP representative and the ASE representative shall have a meeting by telephone or in-person to discuss and try to resolve work that is listed on the Work Objection Notice. If matters listed on the Work Objection Notice cannot be resolved, MXP may seek court approval for the actions.
6. Every second Friday, commencing on Friday, January 12, 2024, MXP shall deliver by email to ASE a copy of documents (the “Sales Report”) showing any and all sales of oil and gas during that week and the amounts actually received by MXP or that MXP will receive in the future for the sales and the amounts that MXP expects to receive in the future. If MXP does not timely deliver the sales report, MXP may not perform and items listed on the Fortnightly Work Budget submitted on the Friday the Sales Report is to be delivered to ASE.
7. The representatives of MXP and ASE that must meet under this agreement may be changed by either MXP or ASE on one hour`s notice by email.
8. Any information required to be sent to MXP shall be sent by email to: Mr. Pearce, Mrs. Patman, and a copy to Mr. Liepens (MXP`s Attorney). Any information required to be sent to ASE shall be sent to Mr. Burns, Mr. Chris Hemsworth, and Mr. Ward (ASE`s Attorney).
As always we are committed to transparent communication and will keep you updated as the situation unfolds.
Your trust and support are invaluable to us, and we remain dedicated to achieving the best possible outcomes for our investors.
Best regards,
The ASE Team
