Winchester Energy: Another low cost recharge adds 92 boepd
Another low cost top up adds 92 boepd1
Dated: 23 November 2021
ASX code: GOOD
The capital structure
Common shares: 1,008,212,215 Current share price: 1.4c Market capitalization: $ 14M Debt: None
James Allchurch Non-Executive Director
Larry Liu Non-Executive Director
Tony Peng Non-Executive Director
10 Outram Street
West Perth WA 6005
P.O. Box 641
West Perth WA 6872
Phone. : +61 8 9200 3743
Fax: +61 8 9200 3742
4900 Woodway, Ste. 780 Houston, Texas 77056
Phone. : +1 713 333 0610
Winchester WI production now 611 boepd with
inflows of A $ 1.28 million for October 2021
- Following the success of Ellenburger White Hat Training 2106, a replenishment was performed at White Hat 3902 targeting a 74-foot Ellenburger interval identified as prospective on logs
- Following perforation and acidification, the well was put into production and is now producing 92 barrels of oil equivalent per day (bepd)from a total renewal cost of US $ 100,000
- Replenishments at McLeod 1703 and 1705 – both wells have been brought into production and produce a total of 20 bepj
- At a time of high oil and gas prices, Winchester has production, net of its working interest, of more than 611 bpd – a production record for the Company.
- Winchester received US $ 950,000 (AUD $ 1.28m) for October 2021 oil and gas sales– this figure is expected to increase in November with White Hat 3902 now live
Winchester Energy Limited (ASX: WEL) (Winchester or Company), as the operator, is pleased to inform you of the initial production from the White Hat 3902 well following the completion activities. White Hat 3902 is located on the company’s extensive rental land in the Eastern Permian Basin, Texas.
At a cost of approximately US $ 100,000, the White Hat 3902 well has been successfully drilled and acidified and now produces 92 bepd. Winchester’s Net Working Interest (WI) production from its East Permian leases is currently 611 boepd out of gross production of 655 boeepd.
Winchester non-executive director James Allchurch commented:
“On the bottom of the game-changing White Hat 2106 well that over the past week averaged over 375 boepd, Winchester inexpensively rebuilt a 100% underperforming participation well that is producing now 92 boepj.
Daily production at present is now 611 bpd net in Winchester with full exposure to high oil and gas prices. The company has a market capitalization of approximately AU $ 15 million and gross sales of over AU $ 1.28 million2 in October 2021 alone. ”
- boe (barrels of oil equivalent) – gas quantities are converted to boe using 6,000 cubic feet of gas per barrel of oil. The 6: 1 conversion ratio is based on an energy equivalence conversion method and does not represent value equivalence. Estimates are rounded to the nearest boe.
- Using the exchange rate 1 AUD = 0.74 USD
White Hat 3902 (100% WI) – Ellenburger Recompletion
White Hat 3902 was drilled by the Company in December 2019 targeting Fry Sand, returning a modest initial production rate of 30 b / d before failing to maintain commercial throughput. White Hat 3902 penetrated the Ellenburger Formation to a total depth of 7,061 feet with logs on all potential formations.
In a program costing less than US $ 100,000, the Company successfully pierced 74 feet of the promising Ellenburger formation with logs. The gap was then acidified to clean the ring and swabbed to remove the spent acid.
White Hat 3902 has now been put into production and has averaged 92 bpd over the past four days. This includes 73 bpd and 114,000 cubic feet of gas per day (mmcfpd)3.
White hat 3902 – IP: 92boepd (Ebg)
Figure 2: White Hat 3902, White Hat 2106 and Fry Sand production well locations
McLeod 1705 Frac (100% WI) – Straw sand
McLeod 1705 was drilled in June 2021 with subsequent wireline logs identifying an encouraging gross payout interval of 8 feet (6,461 to 6,469 feet deep) in the Strawn Sand formation. The sand correlates with four wells immediately to the east that produced a total of 200,000 barrels of oil.
3 boe (barrels of oil equivalent) – gas quantities are converted to boe using 6,000 cubic feet of gas per barrel of oil. The 6: 1 conversion ratio is based on an energy equivalence conversion method and does not represent value equivalence. Estimates are rounded to the nearest boe.
The operations included the successful perforation of the 8-foot interval and a 120,000-pound sand fracturing to stimulate the reservoir. The well is now consistently producing 10 b / d.
McLeod 1703 Frac (100% WI) – Cisco Sands
McLeod 1703 was drilled in February 2020 with full depth targeting Cisco Sands, just before Strawn Sands. The well encountered the thick Upper Cisco A unit and a 197 foot very thick Upper Cisco B coarse sand package. The entire sand package is interpreted to contain petroleum, but the quality of the reservoir and the details of the reservoir’s architecture are uncertain.
The Cisco Upper Cisco B was punctured and acidified in February 2020 but was not stimulated by the fracture. McLeod 1703 produced over 5,000 barrels of oil equivalent4 to this day of this area.
The successfully completed fracture stimulation program used the existing 66 feet of perforation to achieve a completion similar to that of the White Hat 1705 designed to optimize perforation throughput.
McLeod 1705 currently produces about 10 bpd, including four barrels of oil and 40 mmcfpd.
Figure 2: Winchester leases showing the locations of McLeod 1703 and 1705 wells
4 boe (barrels of oil equivalent) – gas quantities are converted to boe using 6,000 cubic feet of gas per barrel of oil. The 6: 1 conversion ratio is based on an energy equivalence conversion method and does not represent value equivalence. Estimates are rounded to the nearest boe.
The publication of this announcement has been authorized by the Council.
For more information, please contact:
For more information, please contact:
T: +61 8 9200 3743
About Winchester Energy Ltd (ASX code: WEL)
Winchester Energy Ltd (ASX: WEL) is an ASX-listed Australian oil and gas explorer and producer with its operating base in Houston, Texas. The Company is solely focused on the exploration, development and production of petroleum in the Permian Basin of Texas.
Winchester currently produces approximately 130 barrels of oil equivalent per day (bepd) net of its direct holdings (WI), generating sales of AUD $ 661,805 in the June 2021 quarter.
As of December 31, 2020, Winchester’s resources and reserves were calculated at 495,800 barrels of oil equivalent in 3P reserves and a combined total of 11.1 million barrels of oil equivalent (Mboe) in contingent and potential resources. Please refer to the ASX version of Winchester on March 16, 2021 for more details.
Declaration of competent persons
The information in this report is based on information compiled or reviewed by Mr. Keith Martens, Consultant Geologist / Geophysicist with Winchester Energy. Mr. Martens is a qualified Petroleum Geologist / Geophysicist with over 45 years of petroleum experience in Australia, North America and other international fields, both in onshore and offshore environments. He has extensive experience in petroleum exploration, valuation, strategy development and reserve / resource estimation. Mr. Martens holds a BSc. (Double major) in Geology and Geophysics from the University of British Columbia, Vancouver, Canada.
Winchester Energy Ltd. published this content on 23 November 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on November 23, 2021 01:48:05 AM UTC.