Phase 7 (ASE 7) Valued Partners,
As you are aware, Phase 7 partners now have an interest in Phases 4 & 5. The relevant updates are below:
Phase 4
Following our previous portal update, we are now one step closer to completing the Lois 1 well, as our team has analysed the pressure test data from the ASE 4 and preliminary results from the ASE 3 well. The data shows that the ASE 3 and ASE 4 sand stimulation was effective because we are seeing a negative skin factor, -7 (stimulated as opposed to damaged), but the matrix (formation) permeability to oil is quite low. All of this makes a strong case for acid stimulation to open the pathways in the matrix to allow the oil there to get to the fracture more easily.
The plan is to focus on the ASE 4 well first, as we have the most data on this well, including the core samples. We will first design the exact acid stimulation, followed by booking this scope of work to be completed. Once we have achieved acceptable results from the acid stimulation on the ASE 4 well, we will then look to incorporate the acid stimulation into our sand stimulation on the Lois 1, with the intention of achieving peak oil production in the quickest time possible.
Phase 5
Since our previous portal update, we have a clear plan in place to complete the Lois 2 well. In the past week, our team has analysed the pressure test data from the ASE 4 and preliminary results from the ASE 3 well. The data shows that the ASE 3 and ASE 4 sand stimulation was effective because we are seeing a negative skin factor, -7 (stimulated as opposed to damaged), but the matrix (formation) permeability to oil is quite low. All of this makes a strong case for acid stimulation to open the pathways in the matrix to allow the oil there to get to the fracture more easily.
The plan is to focus on the ASE 4 well first, as we have the most data on this well, including the core samples. We will first design the exact acid stimulation, followed by booking this scope of work to be completed on the ASE 4 well, while this is happening we will recommence the drilling of the Lois 2 well down to TD of 4,300 ft and then look to incorporate the acid stimulation into our sand stimulation on the Lois 2, with the intention of achieving peak oil production in the quickest time possible.
Also, we have had some inquiries regarding the exact working interest allocation in these wells. We are currently finalizing the details with our accountants and will provide investors with this information in the coming weeks.
