Valued Partners,
Once the Lois 2 well has been drilled and our geologist and petroleum engineer have analysed the well log, we will confirm the exact location for the ASE 7 well, as there are multiple locations that we have shortlisted. Following the same steps, once the ASE 7 has been drilled, we will select the locations for the ASE 8A and then the ASE 8B well.
Below is a summary of all other Seminole County project developments.
The ASE 1 well continues to pull water from the reservoir. As we get close to 85% of the stimulation fluids being removed, we are now seeing a slight improvement in the oil cut. Currently our team has set up the workover rig and will complete the repositioning of the ASE 1's downhole pump, lowering to approximately 90 ft below the perforations. This method has instantly improved oil production in the ASE 4 well by controlling the back-pressure in the wellbore.
Throughout the week, our team repaired the ASE 2's downhole pump, and Deane Pierce collected samples at the wellhead, showing an improved oil cut of approximately 30-40% (oil-to-water ratio), which is very encouraging to see.
Unfortunately, there has been limited work conducted in the past two weeks. This is due to sub-freezing temperatures & staffing issues due to COVID-19. That being said, there have been some positive steps made since the previous portal update, which have resulted in some positive results. This relates directly to the ASE 4 well, yet the data supports and confirms that by repositioning the downhole pump in each well, we will be able to get the back pressure off and thus see not only improvements in the oil cut but the oil production rates too.
This week our team was able to reposition the ASE 4's downhole pump, which in the past four days has seen a substantial increase in oil production. This week, the well produced its highest daily production, producing 21 barrels of oil in 24 hours, and is on-track to produce the largest quantity of oil within a 7-day period.
The ASE 3 well has just had its downhole pump repositioned, and it is anticipated that this well will follow the ASE 4 well with regard to improvements in oil production.
As mentioned in the last portal update, we will continue monitoring and taking pressure tests on a daily basis. This data will enable our team to optimise oil production, which will in turn, substantially increase the net revenue paid to all investors.
ASE rig 3 will be moved from the Lois 1 location as soon as the Lois 2 pad and road have been fully constructed. Once completed, Yellow Jacket will conduct the perforation of the well, followed by Quasar to complete the sand stimulation process.
The cattle guard which is located at the entrance of the Lois 2 road has been fully installed and limited road construction has taken place due to sub-freezing temperatures and limited staff due to high COVID-19 cases. Once the service road and drilling pad have been completed, we will be ready to commence mobilisation of ASE 3 rig to the Lois 2 location.
The outlook for oil is looking extremely bullish with most financial institutions increasing their oil price predictions for this year and 2023. We thought this article would be of interest to our Investor Partners.
Goldman Sachs Sees Oil at $96 This Year
