Dear Valued Investor Partners,
We hope this update finds you well. As soon to be holders of ownership in the newly drilled wells within the ASE Lois LP programme, please find below your July 2026 operational update covering the Lois Anne wells, the disposal infrastructure that supports them, and the drilling programme that will complete the partnership.
July has been an excellent month for this programme. We have first gas flowing to sales from the #2-1, a strong fluid level result on the #4-1 that has it heading to sales as well, strong progress on the disposal well, and two new drilling locations selected and agreed.
LOIS ANNE #1-1
Status: Producing
Production from the #1-1 has been steady through July. Once the SWD is operational, we will drill out the bridge plug and re-open the Wilcox perforations, which would add a further producing interval.
LOIS ANNE #2-1
Status: Producing gas, flowing
A significant milestone. The #2-1 was turned on during July and began sending gas to the sales line.
Fluid levels were reshot in the second week of July, and the bottom hole pressure readings are exactly the signature we want to see ahead of putting the well on pump.
The gas engine has been repaired, and the well is expected to be online in the next 5-10 days once the cement work is complete.
The well is scheduled to run rods and set a pump. Beyond moving fluid with an anticipated oil cut, the #2-1 has the potential to produce greater volumes of gas once it is on pump. The mains electricity remains approximately 30 to 60 days out, and the gas engine solution bridges that gap in the meantime.
LOIS ANNE #3-1
Status: Drilled and awaiting completion
The #3-1 is drilled and ready to be completed. The completion is sequenced to follow the Lois #1 saltwater disposal well coming online. This is a deliberate ordering decision, as having disposal in place first protects the economics of the completion.
LOIS ANNE #4-1
Status: Shut in, being prepared to flow to sales
The new fluid level report on the #4-1, taken on 3 August, was a positive development.
FLUID LEVEL TEST RESULTS, 3 AUGUST 2026
Calculated bottom hole pressure: approximately 114 PSI
Bottom hole pressure on initial test: approximately 24 PSI
Increase since initial test: approximately 90 PSI
Venting: the well continues to vent at a decent rate
That is a substantial build in bottom hole pressure between the two tests, and combined with the continued venting, it is a clear indication that the energy within the Booch is starting to build within the wellbore.
The recommendation, and our plan: hook up the flow line, open the well up, send the gas to sales, and retest fluid levels in 2 to 4 weeks. This is the same plan we are following on the #2-1, and it is the sensible order of operations. Opening the well up and letting it produce gives us real production data to work from.
LOIS #1 SALTWATER DISPOSAL WELL
Status: Awaiting OCC approval, approval expected imminently
We report on the Lois #1 here because the disposal well is the key that unlocks the completion of the #3-1, the return of the ASE 1 and the ASE 4 to production, and the economics of the Wilcox and the Hunton formations across the lease.
The surface use agreement with the landowner has been acquired, and we have received correspondence from the underground injection control reviewer at the OCC.
The one open technical item relates to the Base of Treatable Water. The OCC's record for this well has moved from 510 feet to 724 feet, and surface casing must be set 50 feet below that depth, which would require casing set and cemented from 774 feet to surface. We have applied for a waiver citing the OCC's own Base of Treatable Water tables from 2021, which is when the well was drilled, and expect a response within days. If the waiver is not granted, the remedy is simply to set a liner and squeeze approximately 300 feet of cement, taking approximately 1 additional day of rig time. Quotes are in hand. Both paths reach the same destination.
Road work to lay the right of way is scheduled to commence in the next 5-10 days, followed by rock spreading around the wellbore to improve the well pad.
DEVELOPMENT PLAN, TWO NEW DRILLING LOCATIONS SELECTED
On 20 July ASE partners met with our geologist, John Dowds, and confirmed the two remaining drilling locations that will complete this partnership.
The #5-1 sits north of the #2-1 and has been moved further east, deliberately stepping away from the fault that affected earlier results, which gives us a much better opportunity to stimulate cleanly. It is a genuine multi pay location, with the Ada, the Stray, the Calvin, the Booch, potentially the Hunton, the Woodford and the Viola all in play. We are drilling to approximately 3,300 feet for the Booch and have elected to go approximately 500 feet deeper to evaluate the Woodford and the Viola. Surface access is straightforward.
The #6-1 sits approximately 450 feet southwest of the ASE 1. The primary target is the Booch, and our geologist has specifically recommended drilling the Woodford formation. The Booch and the Woodford are close enough that they can be commingled.
Both locations will require a location exception from the OCC, and both have flexibility to shift by 100 to 150 feet to optimise surface access without compromising the geology.
Timing, and why we are not drilling immediately. We want to be clear with investors that we will not be moving straight to the drill bit on these two locations. Our plan is to first maximise production from the wells we have already drilled, and to gather the important data those wells will give us, before we commence drilling the final two wells within the partnership.
There is a sound reason for taking that order. The next few months will change what we know about this lease considerably. The Lois #1 disposal well is close to approval, the #2-1 goes on pump, the #4-1 is opened to sales with a fluid level retest to follow, the #3-1 is completed once disposal is available. Every one of those steps adds production for the partnership, and each one also adds real information about how these zones behave.
That information feeds directly into the last two wells. The #5-1 and the #6-1 are the final locations in this partnership. Drilling them with the benefit of production history from the wells around them, rather than ahead of it, gives them the best possible chance of success.
COMING UP, AUGUST 2026
The waiver decision on the Lois #1 is expected within days, with OCC permit approval to follow. The #2-1 comes online with the repaired gas engine once the cement work is complete. The #4-1 has its flow line hooked up and is opened to sales, with fluid levels to be retested in 2 to 4 weeks. On the final two locations, the location exception and increased density filings are being progressed so that the regulatory work is complete and ready well ahead of the time we move to drill.
Our next scheduled investor portal update will be released on or before September 11th, 2026.
Best regards,
THE ASE TEAM
