Valued Partners,
All Phase V investors are one step closer to the commencement of drilling of the Lois 2 well, as the Lois 1 well has been officially staked and repositioned. This is based on the very latest analyses from all of the ASE wells' petrophysical results. In particular, the ASE 4 well's results, and other factors like selecting higher ground to minimize delays due to inclement weather and unsafe site conditions which have created delays in our drilling program in the past.
We have just received multiple loads of timber that will be used to construct the service road to access the Lois 1 well location. The land surveyor has marked out the most suitable positioning for the road and construction will commence in the coming weeks.
Expanding on the previous portal update, here is the latest news regarding the ASE 4 well and other developments on our Seminole County lease.
We are pleased to report that the weather in Seminole County seems to be improving as we approach summer and the traditionally hot and humid weather Oklahoma experiences through mid-June to mid-September. That being said, the recent months of heavy rainfall have not only affected ASE's operations, but they have had an impact on most other operators and service providers in the area. Quasar, who will be performing the sand stimulation/frac on the ASE 3 & ASE 2 wells, is currently completing a backlog of delayed jobs, and because of this fact, the sand stimulation has been pushed to the 25th of June.
Each day that our team has continued to swab the ASE 4 well we have seen improvements in the oil-to-water ratio, and the very latest control samples are showing up to a 100% oil cut. Currently we have recovered just under 60% of the total load water used to complete the sand stimulation, and by all reports from our registered Petroleum Engineer, Dean Pearce, the well's performance is better than expected, and the increase in oil cut supports the Misener/Hunton core results.
This week, we will be installing the PCP along with the natural gas generator, and the ASE 4 will officially commence its production phase.
Senior Partner & COO McLoughlin recorded three short videos that cover the EIA (Energy Information Administration) report released in Q1 of 2021, WTI price, and the current oil rig count chart. All of these videos support the ever-growing gap in supply and demand of oil, and why most experts are predicting WTI to continue to increase in value.
