Valued Partners,
All Phase 7 & 8 investors will be interested to hear that the new drilling data collected from the Lois 1 has given our team, especially Wayne Beninger (Geologist), incredible information which will be invaluable regarding selecting the new drilling locations for the ASE 7, ASE 8A, and ASE 8B wells. Once we drill the Lois 2 well which will be north of our current wells, we will then make the final decision as to the exact location for the ASE 7, followed by the ASE 8A, then of course the ASE 8B.
Deane Pierce, our Petroleum Engineer, has completed the Lois 1 Well Report and it has been confirmed that we have 3-4 hydrocarbon-bearing formations within the wellbore. In addition, the Woodford Shale looks to have large quantities of oil. Please read the report using the link below.
Lois 1 Wellsite Report
Our team is preparing to mark out the Lois 2 road and pad in preparation for building the service roads, followed by the mobilisation of the ASE 3 drilling rig.
Below is a summary of all other Seminole County project developments.
The ASE 1 well continues the process of flowback with approximately 50% of the stimulation fluid now removed, with small improvements in the oil cut being reported. In addition, the well is still producing commercial quantities of natural gas.
This week the ASE 2 well was reported to produce its highest volume of oil in a single day, producing just under 60 barrels. This is great news for not only Phase 1 investors but all investors in our Seminole County project, because this well is starting to behave in the manner predicted by our team of geologists and petroleum engineers. This well has removed the largest volume of water and as the de-watering continues, we anticipate seeing improvements in the oil cut and thus oil production in the ASE 2 and all wells. Once we replace the downhole pumps in the ASE 3 & 4, then install the gas anchors and new valves, we strongly believe that oil production will improve, and that we will continue to see improvements throughout the dewatering process.
The ASE 3 well has seen small spikes in daily oil and gas production, as the well continues to work through its dewatering phase. This week we have mobilised one of the workover rigs in preparation for changing out the current pump. Next week (weather permitting) we are scheduled to commence the installation of our new downhole pump assembly, which was specifically designed for our wells. Once the pump is in operation, our team believes that we should start to see substantial improvements in oil production. In addition, once we receive the other components (pressure valve and gas anchor) and complete the installation procedure, we anticipate continuing to see increases in oil production throughout the dewatering phase.
The ASE 4 well (Phase 3) continues to produce some of the highest quantities of gas when compared to all of the other ASE wells, and the oil production has seen no major spikes in the past two weeks. Today we have setup the other workover rig and commenced the replacement procedure for the new downhole pump assembly, which was specifically designed for this well. Once complete the well should be back online in the next 24 hours, with improvements in the oil cut and oil production to follow. In the coming weeks we will install the pressure valve, and as this well continues through the dewatering phase, we anticipate seeing continued improvements regarding the volume of oil produced.
This week we have officially released the Mesa Vista Phase 2 project in Roberts County, Texas. Below is your First Right of Acceptance letter, which includes access to the IM and the project overview video.
First Right of Acceptance
