Phase 7 (ASE 7)
Valued Partners,
Per our strategy that was outlined in previous portal updates, here is the latest news on the ASE 4 well. Since the acid stimulation was conducted, and over the past two weeks, our team has been swabbing on a daily basis. During this period the well has continued to show daily improvements, with gas chasing the swab out of the well between each swab run and reservoir pressure seeming to increase every day, now sitting at about 650 psi. We have recovered approximately 40% of the treatment fluid so far but will need to establish a constant drawdown in the area of the wellbore to get more oil moving to the well. After each night the ASE 4 is shut-in, it allows the water to bypass the oil towards the well because the water has higher mobility than the oil. Even so, the reservoir is demonstrating the ability to give up fluids at 350-400 bpd which is part of what we intended to accomplish with the acid stimulation. The second part is increasing the oil cut, which we believe will occur when the pump has been reinstalled.
Wayne Beninger has stated that the preliminary results are better than expected and that the team is confident that as the remainder of the treatment fluids are removed, we should start to see a higher oil cut.
In the coming weeks, it is anticipated that we will know exactly how well the acid stimulation has worked and whether any small adjustments or improvements can be made. Once this event has occurred we plan to complete an acid stimulation on the ASE 3, followed by the ASE 1 and 2 wells. Once the ASE 3 well has undergone the acid stimulation and the results have been analysed and compared to the ASE 4's results, the exact completion method will be finalised for the Lois 1 and Lois 2 wells. This will incorporate the very latest nano-technology and will combine both the sand and acid stimulations. The next step is to expedite the process to drill and complete all other wells (ASE 7, ASE 8A & 8B).
