Valued Partners,
We have officially selected the optimal location to drill the Lois 2, and the well was staked this week. After we have completed drilling the Lois 1, our team can start marking and constructing the roads in preparation for moving the rig to location.
Below is a summary of all other Seminole County project developments.
Since our previous update the ASE 1 well has been successfully swabbed. The pumpjack has been installed and is fully operational. The well is now officially in the flowback phase, and over the coming weeks we will continue to remove the ~5,000 barrels of stimulation fluid used. Our Geologist, Wayne Beninger; Petroleum Engineer, Deane Pierce; and the ASE team are extremely excited to have dual-completed/co-mingled the Booch and Hunton/Misener formations.
Every Seminole well that has been drilled so far contains substantial amounts of both of these hydrocarbon-rich formations, so we look forward to keeping all of our investors informed of the dual-completion's progression. Additionally, our investor partners have received their 10th gas revenue payments this month.
Regarding the ASE 2 well, we are seeing small improvements to the oil cut as the well continues to be de-watered. Phase 1 investor partners received their 2nd oil revenue payments this week.
The ASE 3 well (Phase 2) is continuing to be de-watered, and we are in the process of installing gas anchors and back pressure valves to control the gas and increase the efficiency of the well. Currently this well is running at under 50% efficiency, and our team of experts have stated that by controlling the gas, we can observe great improvements to the oil production. In combination with the de-watering process, our team is extremely confident that the oil cut will improve and thus the oil production will substantially increase.
Regarding the ASE 4 well (Phase 3), we are in the process of completing the dual solution for minimising gas interference and improving the efficiency of the pumpjacks. In combination with the de-watering process, our team is confident that the oil cut will improve and thus the oil production will substantially increase.
Please note that due to transportation challenges across the U.S., there have been less trucks available to pick-up oil. In the previous two months there have been large quantities of oil in the tank batteries awaiting pick-up. This has affected all oil producing wells.
This week we had a meeting with our operator regarding the commencement of drilling the Lois 1. They have stated that with improvements to the drilling rig, and their experience drilling multiple ASE wells at Seminole, they are supremely confident that they will be able to drill this well (and all future wells) in record time, potentially as quickly as 6-8 days. The rig is currently undergoing safety checks and we are confident that we will be able to begin pre-drilling operations very soon. Also, we have installed the bulk of the Lois 1 facilities, such as the separator and tank batteries, so as to fast-track oil and gas production.
Seminole well map
Lois 2 stake
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