Valued Partners,
The bulk of the ASE rig#3 has been moved in preparation to commence drilling the Lois 1 well. Unfortunately, heavy rainfall, which has been some of the worst recorded for years, has made large sections of the lease waterlogged and unsafe to operate the crane and complete the rig move. We have been laying wooden matting down to act as a road so as to allow us to move the heavy machinery and the drilling rig to the Lois 1 location. Despite these efforts, the wooden matting has been underwater and thus unsafe to drive the crane and rig over it. Our team has been doing everything possible to speed up the process, but the safety of our crew is our top priority.
We are approximately three weeks away from the start of summer and we anticipate drier weather, so we can start drilling the Lois 1 well and look to fast-track our drilling operations.
Expanding on the portal update last week, we thought all investors would appreciate being informed of the ASE 4 well's flowback results thus far, as this news has a positive impact on all current and future wells in our Seminole County project.
On Monday, due to a continuing pattern of inclement weather, we were unable to recommence the swabbing procedure, but we still opened up the well and it kicked off flowing with over 450 psi. On Tuesday, our team reported a column of oil over 350 ft. before swabbing, and 650 pounds of pressure, with our swabbing samples showing a high degree of oil.
By the end of our fifth day of swabbing, we had recovered 443 barrels, and as of the 28th of May, we are filling up our second frac tank with a combination of load water and increasing amounts of oil. Over the past three days, our fluid levels have risen from 1,700 ft. to 1,600 ft. to 900 ft. from the surface, with the well gassing and flowing intermittently. The flowback results have far exceeded our expectations and all of these observations in combination with our data and test results conclude that the ASE 4 sand stimulation/frac has gone better than anticipated.
Based on advice from our petroleum engineers, we are in the process of ordering a PCP (progressing cavity pump), which based on the results of the ASE 4's flowback will increase efficiency and assist in optimizing production.
Typical PCP installation (for illustrative purposes)
Wayne Beninger (our Geologist & Engineer) recorded two videos this week reviewing both the Misener/Hunton and the Booch Sand formations:
