Valued Partners,
We are now one step closer to drilling the Lois 2 well, as we have selected the Lois 1 well's position, and in the coming days the ASE rig #3 will be prepared to commence its relocation.
Late last week, we received a preliminary summary of the ASE 4's core tests, which have far exceeded our petroleum engineers' and our expectations. In summary, the results show that the Misener/Hunton formations, which adjoin each other, contain more oil than we originally anticipated, with improved permeability and a very high percentage of the pore space filled with moveable oil (42.8%). Our petroleum engineers stated in the report that 42.8% is a very large number, as recoverable oil is estimated as a fraction of oil in place. We have provided the summary for your reference. Please see the link below.
Our engineers believe that these wells could be a perfect fit for utilizing the latest nano-proppant technology to enhance oil recovery. That being said, we are still in the process of selecting the optimal fracture design and we will report once a final decision has been made.
Finally, we have engaged a number of vendors regarding the fracking of all ASE wells (ASE 1-4). We have shared the core test results, and in the coming weeks ASE will select a company to complete the fracking procedure.
Based on test results, drilling data, and extensive research, we believe that the selected completion process for the ASE 1-4 wells will be used for the Lois 2 well and all future Misener/Hunton wells. We expect that this will greatly reduce the time between drilling and achieving oil production.
ASE 4 Preliminary Core Test Summary
