Phase 4 (Lois 1)
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 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 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 1 month. 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.
On a more positive note, we are thrilled to share an important update regarding the Cherokee project. Our dedicated drilling team has been diligently preparing the well pad, and we are delighted to announce that we are scheduled to mobilize the drilling rig on the 10th of July. Please note, the rig mobilization was due on the 6th of July, yet due to torrential rain over the past few days, this has been pushed back as we wait for drier ground conditions prior to safely moving the rig into position.
To ensure you can actively experience the entire drilling process, we will be providing all investors with their portal logins this week. This will� you exclusive access to experience the excitement and progress firsthand.
Our plan for the project involves drilling pods of 6 wells and incorporating a waterflood technique. This approach is designed to maintain pressure and extract a significantly higher volume of hydrocarbons, potentially up to 100% more. It is important to note that since the wells will utilize a shared, oversized tank battery, ASE has decided to allocate a certain percentage of the revenue derived from all 6 wells to all Seminole County Phases 4, 5, 7, and 8 investors. This ensures that all stakeholders can benefit from the success of the project.
Additionally, in the coming weeks, we will provide each investor with their specific percentage of ownership in the 6-well project, ensuring transparency and clarity.
If by the 10th of July, you have not received your Cherokee Phase 1 login, kindly reach out to us so we can promptly assist you.
We extend our appreciation for your continued support and trust as we embark on this exciting phase of our Cherokee project.
Sincerely,
The Alpha Seven Energy team
