Dear Valued Investor Partners,
We hope this update finds you well.
Please find below your September 2026 update on the Lois Anne wells and your partnership's interest in them.
FAST-TRACKING OUR WATERFLOOD IMPLEMENTATION
As communicated in previous portals, our intention was to convert the Lois #1 well into an SWD (saltwater disposal well). To date, we have not been able to reach commercial terms with the landowner of the southern section of our lease, which contains the Lois #1 well.
As a result, we are looking to fast-track our waterflood implementation across the ASE Oddfellows Oilfield, a step we believe has high potential to substantially increase both oil and gas production.
A waterflood puts water to work. Water is injected into the formation through one or more enhanced recovery injection wells (ERI wells), restoring reservoir pressure and pushing oil and gas towards the surrounding producing wells. This delivers two key benefits:
We have engaged an engineer to carry out a full waterflood study and engineering report, which will confirm the exact well or wells to be converted into ERI wells.
YOUR PARTNERSHIP'S INTEREST IN THE LOIS ANNE WELLS
As advised in our previous update, ASE has decided to allocate ownership in the four drilled Lois Anne wells now, rather than wait for the #5-1 and #6-1 to be drilled. This is a positive step. Our main goal is to get investors into revenue as soon as possible, and allocating the drilled wells now, rather than at the end of the development of all six new wells, is the fastest way to do that.
Behind the scenes, our finance and administration team is setting up the allocation within our accounting and well management software. We appreciate your patience, and please be assured that we are expediting this process as quickly as possible. We look forward to officially confirming the allocation once the working interest has been provided to each limited partnership.
The percentage, effective date and terms of the allocation will be set out in a formal notice to each partnership. Nothing is required from you now, and there is no new subscription. Distributions from the interest will be paid through your partnership in the usual way, after the operating costs of the wells. We will include an estimated timing in the notice.
A NOTE ON THIS UPDATE
This is all the information we are able to provide at this time. We understand you may have further questions, and we will provide additional detail in the next portal update as the allocation is finalised and the waterflood study progresses.
Our next scheduled investor portal update will be released on November 12th, 2026.
Best regards,
THE ASE TEAM
