Valued Partners,
Here is a summary of all other Seminole County project developments:
On Thursday we received the official permit to drill the Lois 1 (API# 133-25365). Due to personal circumstances, the landowner was not able to sign the SUA to commence the road construction, but we anticipate this will occur next week. Over the recent weeks we have been stockpiling the wood matting/sleepers required to build the road.
We would like to express our gratitude to all of our investors who have been patiently waiting for this well to be drilled. We are working as diligently as possible to ensure that this well, and the following wells, are drilled in a timely manner. This well holds a special importance for the entire ASE team, and most importantly for Dylan Knight (ASE's Co-Founder) as the Lois 1 was named in honour of his late grandmother.
In the past 24 hours, we have repositioned the ASE 4's PCP (progressing cavity pump) to 50 ft. above the perforations (Hunton/Misener zone), with the intention of increasing the oil cut which is approximately 30%. The best recorded day was approximately 80 barrels, yet the well has still been dewatering, and due to massive oil surges the pump has been non-operational for a large portion of the night. The solution is to install a larger gas separator so as to handle the oil surges and to ensure the pump is fully operational 24 hours per day.
The ASE 3 well, after performing only 1-2 swab runs, reported up to a 50% oil cut, with gas blows so powerful that it caused oil to gush out of the wellbore. It has been decided that the best course of action is to purchase a larger pumping unit to handle the anticipated oil production volume.
The ASE 2 is officially in production, producing approximately 70 Bopd (barrels of oil per day). Please note, we are still removing water and the oil cut (in ratio to water) is improving daily. In the last seven days, we have sold two truckloads of oil (180 barrels per load) and are currently filling up the tank batteries. We have taken delivery of three more tank batteries, giving us the ability to hold 900 additional barrels of oil.
We recorded a short video last Friday for all of our investor partners who are in Phases 1-3.
Regarding the ASE 1, we have just paid the seventh monthly gas revenue disbursement to our investors, and in the coming weeks Quasar will conduct a dual zone (Misener & Booch) sand stimulation, with oil production to follow.
