Dear Valued Investor Partners,
We hope this update finds you well.
We are pleased to share a number of significant developments across the drilling programme this month, including the spud of a new well, the perforation of the Lois Anne #2-1 in the Booch formation, and continued progress on the seismic survey. Senior partners Dylan Knight and Grant McLoughlin recently spent three days on location overseeing operations and capturing video footage. Two new on-site videos are included in this portal release.
LOIS ANNE #4-1 — DRILLING COMMENCED
Status: Drilling Ahead, Target TD of 4,300 ft
After some delays, we are pleased to confirm that we commenced spudding the Lois Anne #4-1 well this week, and we are making great progress. Site preparation, rig-up, and surface conductor work were completed during the first week of May, and the well was spudded at 14:00 on May 5th. Surface casing was successfully run and cemented to a depth of 850 feet on May 6th, after which drilling resumed.
As of 5:00 PM Central Time today, the well is drilling at approximately 3,300 feet, the anticipated top of the Booch formation. A reminder of why the Booch is our primary target zone: it produces high quantities of oil and gas, with almost zero water. As a reference point, the ASE #3 averages just 0.06 barrels of water per day. This means that even while the disposal infrastructure is being progressed, we have the potential for four of the six new ASE Lois LP wells (the #2-1, #4-1, #5-1, and #6-1) to come into production from the Booch without requiring the disposal system to be fully online first.
LOIS ANNE #2-1 — BOOCH FORMATION PERFORATED
Status: Initial Swabbing, Encouraging Early Indicators
This week we made an executive decision to perforate the Booch formation within the Lois Anne #2-1. After consultation with our geologist John Dowds, our contract operator, and our reservoir engineering team, the unanimous recommendation was to refocus out attention from the Viola zone, and move uphole to target the Booch payzone.
Six feet of the Booch formation has been perforated between 3,306 feet and 3,312 feet. Following the perforation, we pumped 24 barrels of 15% NeFe acid with 50 ball sealers, flushed with 72 barrels of KCL water, and commenced swabbing operations.
Initial fluid entry was minimal, with the well on vacuum after the acid job. However, with each swab run we observed increasing gas blows and gas coming out of the bleeder valve. These are very strong early indicators because the Booch is a gas-driven tight sand formation with very little water content. Following the senior partners' return to Dallas, our on-site superintendent confirmed that fluid entry has commenced and an oil cut is being observed. On Friday morning, the well showed 90 lbs of pressure on the tubing with continued strong gas blow, a significant positive development that confirms the formation is contributing both gas and oil.
The Booch is a tight sand formation, and approximately 80% of all wells producing from this formation require a frac to fully open up the production pathways. This is consistent with the approach taken on our ASE #3 well, which has now had two frac stimulations during its sixth year of operation and continues to deliver strong production. A hydraulic fracturing process (frac) is now scheduled for Monday.
TENTATIVE FORWARD TIMELINE — LOIS ANNE #2-1 & #4-1 WELLS (Subject to change based on operational conditions)
The following operational schedule has been provisionally agreed with our contract operator and service companies for the week ahead:
SEISMIC SURVEY — SCHEDULING IN PROGRESS
The seismic survey is currently in the scheduling phase. We are continuing to follow up with the seismic company to confirm timing and logistics, while concurrently working with surrounding landowners to secure access approvals. We will provide a further update once the programme is scheduled. As previously confirmed, the cost of the seismic survey will not be charged to this Limited Partnership.
LOIS ANNE #1-1
Status: In Production
The Lois Anne #1-1 continues to produce minimal oil volumes. Once the SWD is commissioned, we will re-open the Wilcox formation perforations and potentially perforate additional zones, which is expected to deliver a substantial increase in oil and gas production from this well.
LOIS ANNE #3-1
Status: Drilled & Uncompleted (DUC), Awaiting SWD
The Lois Anne #3-1 completion remains held pending commissioning of the disposal well. The target formations in this well carry sustained water volumes alongside the hydrocarbons, and having the disposal infrastructure in place is essential before bringing this well into production.
LOIS ANNE WELLS #4, #5, #6 — PROGRAMME PIPELINE
With drilling now underway on the Lois Anne #4-1, the #5-1 and #6-1 are scheduled to follow after the seismic survey. All three wells will target the Booch formation, consistent with the strategy that has delivered our most successful well to date.
OVERALL PROGRAMME OUTLOOK
We genuinely appreciate the patience investors have shown throughout this process. After a period of careful preparation, we are now firmly in a phase of tangible activity. Drilling is underway on the Lois Anne #4-1, the Lois Anne #2-1 has been perforated and is showing very promising early signs, and the seismic survey is being scheduled. We will continue to issue milestone updates throughout this period to keep all investors fully informed as progress is made.
Our next scheduled investor portal update will be released on or before June 12th, 2026.
Best regards,
THE ASE TEAM
