Valued Partners,
Our team conducted a site inspection on Thursday with the intention of filming the derrick and doghouse being raised on ASE rig #3, but due to inclement weather, the operations team was unable to conduct this procedure. As soon as it is safe to move-in the crane, we will complete the rig assembly and prepare to commence our drilling operations.
Below is a summary of all other Seminole County project developments.
All Phase 3 investors received their 1st oil revenue disbursement on the 24th of September.
The ASE 3 well (Phase 2) has removed the majority of the load water, with improvements to the oil cut being reported.
All Phase 1 investors were paid their 9th gas and their 1st oil revenue disbursements on the 24th of September. The ASE 1 well continues to produce commercial quantities of gas. Recon is scheduled to conduct the logging of the ASE 1 in preparation for YellowJacket to conduct the dual-zone perforation, followed by Quasar to complete the sand stimulation. Please note, there has been a slight delay regarding Quasar being able to conduct their scope of work. As of now the date we have been given is the 11th of September (weather permitting).
Steady improvements are being reported regarding the dewatering process and our team is looking at improving the oil cut by reducing the gas interference.
As disclosed in our previous portal updates, we have observed a very "foamy" oil. This is due to the higher than expected levels of gas being produced. Our team is looking at improving the oil cut and production volumes by reducing the gas interference. The dynamometer technician who inspected all of the ASE wells this week has recommended two solutions. One is the installation of a gas anchor. This will eliminate the gas pound and allow the pumps to operate with far greater efficiency.
