Winchester Energy Ltd

Winchester signed a binding term sheet to join a Triangle Energy offshore Indonesia joint study (about US$300k, 6-8 months), with an option on 24.5% of any PSC awarded. It will lend Triangle A$500k as bond collateral, and took A$250k loans each from Peterson's Celtic Capital and McGoldrick to help with study costs.

material agreement

Winchester announced a placement of A$300,000 at A$0.001 per share (300M shares), led by CPS Capital, to fund new growth opportunities and working capital. CEO McGoldrick (A$45k) and former director Peterson (A$100k) take part, subject to shareholder approval. Corrected in the next announcement.

capital raising announcement

JVU-5 began production at 25 barrels of oil and 74 of water per day over its first seven days, similar to early JVU-6 rates and expected to decline. JVU-6 now produces 18 barrels a day. The next well, JVU-4, is planned for Q1 2026.

production update

Drilling began on 7 October on the JVU-5 production well, the second producer in the Varn waterflood and first well under the new joint venture. Target depth is 4,900ft, with about five drilling days expected.

drilling spud

Winchester farmed out 30% of the Varn waterflood to a US investor group led by Production Lending, for US$112k upfront and 40% of further costs. Total cost is about US$5.6M, with the group committing about US$2.4M. This resolves the unfunded-waterflood thread; Winchester keeps 70% and operates.

farm in farm out agreement

Chris Zielinski, a corporate lawyer, joined as non-executive director. Rory McGoldrick moves from executive director to part-time CEO on A$120,000 a year with three months' notice. Fills the CEO gap noted in earlier history.

director officer appointment

Jason Peterson (CPS Capital Group) and David Wheeler were appointed non-executive directors, restoring the three-director minimum. The company is still taking advice on the earlier 249D requisition notices.

director officer appointment

All directors were removed by shareholder vote at the 23 July meeting, leaving the company below the three-director minimum. A meeting will be called solely to appoint new directors; shares stay suspended meanwhile. The requisitioners succeeded in removing the board.

director officer appointment

ASX suspended Winchester shares because the company no longer has enough directors to meet the three-director minimum under the Corporations Act. Suspension continues until the company complies with the Listing Rules.

listing compliance notice

Winchester terminated its non-binding Peru term sheet with Jaguar Exploration, citing continued increases in the work program and budget. The offshore Peru plan announced in March is dropped; the company says it keeps searching for projects and maintaining US production.

material agreement termination

A second requisition, from Hugh Wallace-Smith, Darby SMSF and Rojo Nero Capital, seeks to remove Rory McGoldrick and Iain Smith and appoint Yann Cherruau. Together with the 10 June notice, it targets most of the board. Company is seeking legal advice.

security holder rights change

Shareholders Chetan Enterprises and Azuree requisitioned a general meeting to remove chairman Lloyd Flint and director Ricardo Garzon Rangel, and to appoint Frances Lai. The board is taking legal advice. This opens a board control contest.

security holder rights change

Westex abandoned its lawsuit over Winchester's 2022 Group Prospect farm-in, and the Nolan County court dismissed all claims with no damages or costs. This resolves the open US$413,500 claim; no further action is expected.

regulatory community update

Non-binding term sheet with Jaguar Exploration to jointly apply for two offshore Peru exploration blocks (~8,060 km2). If granted, Winchester would operate with 80%, paying Jaguar US$270k cash plus US$300k in shares at 0.3c (~160M shares). Outcome expected in two to three months. This is the first step in the new-projects search.

farm in farm out agreement

Petra Cotes, a shareholder controlled by executive director Rory McGoldrick, gave notice of a resolution to remove director Larry Liu at a general meeting. This signals a board dispute following Liu's staying on despite the June announcement.

other

Westex Resources sued Winchester in Nolan County, alleging it failed to perform farm-in work commitments on the Group Prospect (75% WI acquired June 2022) and claiming US$413,500. Winchester says it will defend the claim.

regulatory community update

Entitlement offer closed with applications for $343,791 (114.6M shares at $0.003), well short of the roughly $765,000 maximum. About 140.5M shares remain as shortfall, which the board may place within three months.

capital raising announcement

Company raised $750,000 via a placement of 250M shares at $0.003, plus a 1-for-4 entitlement offer at the same price to raise up to about $765,000. Funds go to lifting production, new opportunities and working capital. Holland also resigned from the board on 14 June.

capital raising announcement

Lloyd Flint becomes Non-Executive Chairman and Ricardo Garzon Rangel joins the board. COO Doug Holland's employment ended 7 June; Larry Liu to step down 31 Aug. Director fees cut to $36,000 a year; McGoldrick becomes part-time executive director at $1,250/day.

director officer appointment

Rory McGoldrick (lawyer, long-term shareholder) and Iain Smith (petroleum geoscientist, ex-Norwest Energy) joined the board after the 31 May AGM. Tony Peng, John Kenny and Zane Lewis left the board. A significant board overhaul.

director officer appointment

Varn's first producer, JVU#6, unexpectedly made primary oil: about 80 bopd initially, settling at 30-40 bopd plus gas, in a field thought depleted of primary oil. Company says nearby producers may also yield bonus oil; the waterflood is still to start.

production update

Varn waterflood drilling has begun: four surface wells are cased to about 300ft and a larger rig will deepen two to roughly 7,000ft. Locations are 90% ready, with production lines 75% and injection lines 30% done. Completion is now scheduled for December 2022; production is expected to contribute in 2023.

drilling progress report

The Railroad Commission of Texas granted the unitisation order for Varn, completing permitting. Drilling of 11 wells (six producers, five injectors) is to start around the end of July or August 2022. Resolves the unitisation thread, ahead of the 1 September vendor refund date.

regulatory community update

Winchester farms in to Westex Resources' 1,760-acre Group Prospect, next to its 100% Whiteside Prospect, for US$411,400 upfront, taking 75%. Commitments are five workovers and three new wells at about US$600k each, with fees if work is missed. Westex backs in after payout.

farm in farm out agreement

COO Doug Holland joins the board as Executive Technical Director on US$22,550 a month. His package includes performance rights of up to 20m shares tied to production targets and 12m options at 3.5c and 6c, subject to shareholder approval.

director officer appointment

Winchester bought 100% of the Varn Oil Field, Taylor County, 18 miles east, with 2P reserves of 1.068 mmboe, for US$415,000 plus drilling costs (US$5.61/boe all-in), funded from cashflow. Also signed a non-binding MoU with CryptoTherm to study using Varn gas for crypto mining.

asset acquisition disposition

White Hat 3902 recompletion (about US$100k) is making 92 boepd, lifting net production to a record 611 boepd. McLeod 1703 and 1705 together add only 20 boepd. October sales receipts were US$950,000 (A$1.28M). Resolves the 3902 open thread.

production update

White Hat 2106 rose to 352 boepd (about 330 bo plus gas), taking Winchester to over 482 boepd. Drill and completion cost was US$785,000, with payback stated at under two months. A Ellenburger recompletion at White Hat 3902 follows.

production update

White Hat 2106 is on pump making 217 bopd, lifting net production to 347 boepd from 130 boepd in the June quarter, a 2.6 times increase. Gas metering is pending; McLeod 1703 and 1705 completions follow in 2-3 weeks. Cash was A$1.0m.

production update

White Hat 2106 swabbing produced about 65 bbl oil in ten hours (156 bo over 24 hours), with oil cut reaching 80%. The well is flowing on its own; pump and gas metering are being mobilised, with oil sales within a week.

well test result

White Hat 2106 reached 6,820 ft and found a potential 84 ft oil pay zone (6,637-6,721 ft) in the Ellenburger, with strong oil shows and vuggy porosity. Casing is underway ahead of flow testing; the Ellenburger was only a secondary target.

drilling result

White Hat 2106 has spudded at Mustang field (100% WI), targeting the Fry Sand to a planned 6,800 ft, about 10 days to depth. This is the Mustang well planned for Q3 and is the seventh Winchester well in the field.

drilling spud

McLeod 1705 (100% WI) reached 7,835 ft with strong oil and gas shows over 50 ft of Strawn Sands, the interval producing at the nearby Bast Field. The deeper Cambrian target had only modest gas shows and minor fluorescence; logs will decide what to test.

drilling result

McLeod 1705 has spudded to test the Cambrian Sands at Bast Deep (best estimate 948,000 boe gross), planned to 7,800 ft and about 10 days to reach depth. Gas will also be monitored for helium, after earlier samples showed up to 0.11%. Shares on issue are now 863.8m.

drilling spud

Placement of 312.5m shares at A$0.016 raises A$5m, a 19% discount to the 15-day VWAP. Tranche 2 (139.7m shares plus 37.5m broker options) needs shareholder approval. Funds go to Bast Deep, workovers, a Mustang well and the Spitfire prospect. Cash was A$1.1m.

capital raising announcement

Executive Chairman Laurence Roe resigned from the board with immediate effect, only three months after taking the executive role. The company credits him with streamlining operations. No reason is given and no replacement is named in the text.

director officer appointment

Following its review, Winchester restarts field work in Q2 2021 after the 2020 Covid hiatus. First well is Bast Deep (100%, 7,700 ft, ~US$800k, P10 2.34 mmboe gross); a Mustang well follows in Q3, plus workovers. This delivers the promised work program.

drilling scheduled

Independent audit as at 31 December 2020 puts 3P reserves at 496 mboe, down from 1,653 mboe a year earlier. Contingent resources (2C) are 4.35 mmboe and prospective (P50) 6.75 mmboe, a combined 11.1 mmboe. Contingent resources fell from 6.7 mmboe.

resource reserve update

December quarter net revenue was A$503,876 on 187 boepd, steady on the prior quarter. The White Hat 3801 Bonus Sands test found no commercial hydrocarbons and the well is shut in, resolving that thread negatively. A prospect review and 2021 strategy update are due soon.

quarterly activities report

Founding Managing Director Neville Henry retires from 31 January 2021 and stays as advisor for 3 months. Chairman Laurence Roe becomes Executive Chairman, Doug Holland becomes COO, and CFO Hugh Idstein steps down on 31 March 2021.

director officer appointment

The White Hat 2004 upper Cisco re-completion found too little oil to justify fracturing, at about US$35,000 cost, closing that open thread. Winchester now has 100% and operatorship of White Hat 3801 and starts the Bonus Sands test this week, budgeted under US$150,000.

drilling result

Plans a under-US$150,000 frac test of a 'Bonus Sands' zone in White Hat 3801, which Winchester says may span 5,000-7,000 acres. Also, White Hat 2004 Cisco re-entry results are pending, and shut-in White Hat 3902 is back on line at 45 bopd.

drilling scheduled

Independent audit by Mire & Associates (as at 31 Dec 2019) puts net reserves and resources at 11.2 mmboe: 3P reserves 1.65, contingent 6.72, prospective 2.82 mmboe. Best-estimate resources are up 49% on the previous estimate, the first reserves booking in this story.

resource reserve update

Citing the oil price fall and COVID-19, Winchester says it has over A$6.5m cash at 29 February and no debt. It paused heavy drilling before COVID, is reviewing costs, favouring low-cost behind-pipe options and farm-outs, and may seek bolt-on assets.

other

Second Lightning well McLeod 17#3 reached 5,692 ft; logs show up to 124 ft of net Lower Cisco pay versus about 25 ft at discovery well Arledge 16#2. But White Hat 20#4's frac failed to stimulate, with output only 27 bopd.

drilling result

Winchester raised A$6.4m via a placement of 128m shares at A$0.05, a 14% discount to the 10-day VWAP, led by Gleneagle and CPS Capital. Funds go to Mustang development, Lightning offsets and El Dorado/Spitfire drilling. Twice the August issue price of A$0.025.

capital raising announcement

Record production: 506 gross bopd (381 bopd net to Winchester) for the week to 23 October, up from about 50 bopd net since April. Arledge 16#2 is on pump at 131 bopd; perforating a 340 ft interval above is being prepared.

production update

Arledge 16#2 is flowing unassisted at 250 bopd on a half-inch choke, double the earlier 125 bopd, with 80% of frac water still to recover. White Hat 20#5 was fracked on 12 September and is being swabbed, with oil cut rising. Production facilities are being mobilized.

flow test result

After fracking the lower two Cisco intervals at Arledge 16#2, the well flowed 103 barrels of oil in 20 hours on a quarter-inch choke, equal to 125 bopd, up from 80 bopd swabbed unfracked. About 1,400 barrels of frac water remain to be recovered; upper intervals not yet completed.

flow test result

Laurence Roe, founding managing director of Target Energy, became Non-Executive Chairman from 1 September 2019, and Tony Peng, CFO of Helios Energy, joined as a director. John Kopcheff steps down as chairman but stays on the board, which grows to five. Fills the Allchurch gap.

director officer appointment

White Hat 20#5 reached 6,300 ft; logs show 50 ft gross Fry Sand with 20 ft net oil pay and no water, similar to the 20#3 discovery well. Casing is being run, with a frac planned within two weeks. Several shallower zones show extra upside.

drilling result

Swabbing the bottom two of four Lower Cisco intervals at Arledge 16#2 (100% WEL) recovered about 80 bopd before any fracking. The first oil from the Lightning Prospect, it is an early result; a frac crew is expected within two weeks and the upper intervals are untested.

well test result

Winchester has begun drilling White Hat 20#5, the first Mustang Field development well, targeting Strawn Fry Sand at about 5,960 ft, 400 m northwest of the 20#3 discovery. Total depth is 6,200 ft in ~10 days; success could lead to 9 central-lobe wells over 12 months.

drilling spud

Winchester received firm commitments for a placement of about 100 million shares at A$0.025 to raise about A$2.5 million, managed by CPS Capital. Proceeds are for Mustang development drilling, assessing new prospects and working capital, lifting shares on issue to about 531 million.

capital raising announcement

Logs on Arledge 16#2 show 45 ft of calculated net oil pay in the Cisco sands (25 ft Upper, 20 ft Lower), close to prediction, and the well came in under budget. Casing is being run and a workover rig will test it; flow rates are unknown.

drilling result

Drilling of Arledge 16#2 began on 9 July 2019, targeting shallow Cisco Sands in the Lightning Prospect (1.95 mmbo P50, Winchester 100%) to 5,500 ft. This meets the spud deadline to extend the Arledge lease, though the well is an exploration test.

drilling spud

Winchester will spud Arledge 16#2 in July 2019 at the new Lightning Prospect, targeting shallow Cisco Sands with 1.95 mmbo P50 gross prospective resource and a 22.5% chance of success. The well satisfies drilling commitments and extends the 3,342-acre Arledge lease a year.

drilling scheduled

After the 20#3 success, a plan was set for 9 central Mustang wells and up to 25 more at Mustang North and South (34 total). Mustang's gross prospective resource is now 2.03 mmboe (P50), with 10.8m barrels of oil in place; 20#4 spuds in July.

resource reserve update

Winchester will spud White Hat 20#4 in July 2019, a step-out 420 metres from White Hat 20#3, which is averaging 296 bopd after six days. About 15 development wells are planned. Mustang's Strawn Sand P50 resource is restated at 1.43m barrels.

drilling scheduled

White Hat 20#3 is producing 306 barrels of oil a day after a modest frack, above White Hat 20#2's 200 bopd initial rate, and oil sales have begun. This confirms the Mustang discovery. Offset wells planned; 38#3ML and 39#1L produce low rates.

flow test result

Wireline logs at White Hat 20#3 show 28 ft of net oil pay in the Strawn sand (52 ft gross), above the 20 ft at White Hat 20#2, plus 71 ft of possible pay in other zones. Casing is set; Ellenburger and Strawn testing follow. Production rates are still unknown.

drilling result

White Hat 20#3 has been spudded at the Mustang prospect, targeting 6,870 feet in about 10 days, starting the exploration campaign funded by the rights issue. The company estimates a 58% chance of success; CEGX holds 25%. Fracks on 39#1L and 38#3ML are also planned.

drilling spud

Rights issue closed with only A$847,982 raised, a 30% take-up of 42.4m shares at A$0.02. The remaining 100.2m shares, worth A$2.0m, will be placed as shortfall with CPS; the full A$2.85m is not yet secured.

capital raising announcement

Winchester is reviewing the status of the Arledge and McLeod leases, about 7,200 of its 17,000 acres, though US lawyers say both remain in good standing. If not, rights issue money would go only to Spitfire and Mustang. This raises a risk to the El Dorado prospect.

regulatory community update

Winchester launches a 1-for-2 non-renounceable rights issue at A$0.02 a share to raise about A$2.85m, far below the A$0.10 placement of Nov 2017. Funds mainly go to drilling the Mustang, El Dorado and Spitfire prospects (A$2.3m), with first well planned for early February 2019.

capital raising announcement

Independent consultants Mire & Associates estimate gross prospective resources of 7.796 million barrels (best estimate) across El Dorado, Mustang and Spitfire, unrisked and undiscovered. Net to Winchester is 4.870 million barrels. This replaces the retracted larger targets.

resource reserve update

After simple perforation and acid across 20 ft of Strawn, White Hat 39#1L swabbed at up to 200 bopd, without a frack. It follows the failed Ellenburger lateral; the rate needs to persist. The 38#3ML Strawn frack awaits stabilisation.

well test result

Half-year report to 30 June 2018 shows a strategy change: after the second short-radius Ellenburger horizontal failed expectations, focus shifts to vertical drilling in stacked targets. A cost reduction program is in place and farm-in partners are sought for the 17,402 net acres.

half year report

Replacement presentation after ASX removed the original. Financial forecasts on slide 22 were removed and potential resource targets retracted; investors are told not to rely on them. This walks back the earlier 10 million barrel target claims.

investor presentation

Ellenburger lateral at White Hat 39#1L could not sustain commercial flow; Strawn testing follows, with a frac planned late September. CEGX has farmed into the Strawn program (50% WI), leaving Winchester 40.6% and operator.

farm in farm out agreement

White Hat 39#1L's Ellenburger lateral gave 100-200 barrels of fluid a day, but the oil cut declined to trace levels over several weeks. Testing moves up-hole to the Strawn. The MD says this is the second short-radius lateral to underperform on pump. Winchester's lateral interest is 85%.

well test result

The 39#1L lateral drilled 294 ft northwest, cutting fracture zones with elevated gas and oil shows over up to 115 ft, versus 20 ft of pay in the vertical. Drilling was curtailed; completion and testing are under way, with results due the following week.

drilling result

Lateral drilling began at White Hat 39#1L, kicking off at 6,708 ft and heading up to 700 ft northwest to cut seismic-identified fractures. Winchester holds 70% WI. The well is over 1.5 miles from producers, and the MD calls success a potential game-changer.

drilling spud

Winchester abandons the deeper laterals at 38#3ML (best rate 40 bopd, now under 10) and plans to re-enter in early April 2018 to fracture-stimulate the Fry/Strawn (25 ft net pay). A 600 ft lateral in White Hat 39#1 is planned for mid-April, subject to partners.

drilling scheduled

White Hat 38#3ML is producing only 10 barrels of oil and 25 of water a day. Winchester says the three laterals likely hit reservoir already drained by nearby wells. It now eyes shallower zones (60 ft potential pay) and new laterals in 39#1 and 245#1.

well test result

White Hat 245#1 reached 7,000 ft; a drill stem test in the Ellenburger recovered oil (40% cut) but showed low permeability. CEGX declined to complete it and handed its 50% to Winchester, which now holds 100% WI and operates. Net drilling cost was US$200,000.

drilling result

Winchester becomes operator of Thomas 119-1H with 87.5% WI (up from 50%, which was to fall to 25%), ending the CraRuth/MCG joint venture. In return it sold 1,808 net acres to USEC and received US$175,000. Two laterals are planned from February 2018 for US$520,000 total.

asset acquisition disposition

Winchester takes a 50% WI in a new vertical well, White Hat 245#1, drilled by CEGX in an untested southern part of the White Hat lease. Net drilling cost is about US$200,000, with a further US$270,000 net if it is completed. Target depth 7,100 ft.

farm in farm out agreement

Placement of about 35 million shares at A$0.10 to raise about A$3.5m before costs, led by Bell Potter, settling 4 December 2017. Proceeds fund the horizontal development drilling program on the Permian acreage. Adds to the A$2.57m rights issue earlier in 2017.

capital raising announcement

Third lateral (Leg 3) at White Hat 38#3ML (60% WI) drilled 470 ft with about 80 ft of oil and gas shows. All three legs total 430 ft of shows. A fourth leg is dropped; a three-week production test with acid treatment follows. No flow rates yet.

drilling result

First ultra-short radius lateral (Leg 1) at White Hat 38#3ML reached total depth with about 150 ft of good oil and gas shows. Swabbing gave 100-150 barrels of fluid a day, oil cut rising from 30% to 70%. Early support for the technique; no stabilised production rate yet.

well test result

White Hat 39#1 (100% WI) reached 7,000 ft; logs show a potential 21 ft of net Ellenburger oil pay in a 150 ft gross interval, plus 55 ft in shallower zones. Completion awaits 38#3ML lateral results, with a decision in about 6 weeks. Laterals start after a Hurricane Harvey delay.

drilling result

John Kopcheff, founder and former Managing Director of Victoria Petroleum (now Senex), becomes Non-Executive Chairman. Peter Allchurch steps down as Chairman but stays on as a Non-Executive Director.

director officer appointment

Winchester spudded White Hat 39#1, a vertical Ellenburger test about one mile west of 38#3ML, with 100% WI and a US$750,000 budget. It is the 10th White Hat well and Winchester's second as operator; planned depth is 7,100 feet.

drilling spud

Winchester spudded White Hat 38#3ML, its first operated well, a multi-lateral test of four 500-foot Ellenburger laterals. It holds 70% WI but pays 80% of the US$1.7m cost. Costs about double a vertical well (US$890,000), aiming at 20 times more rock exposure.

drilling spud

Rights issue closed with applications for 28,573,898 shares, A$2,571,650 or 53% of the offer. A shortfall of 25,280,270 shares (A$2,275,224) remains, to be placed via Bell Potter within 3 months. Proceeds are for more White Hat wells.

capital raising announcement

Winchester launched a 1-for-4 non-renounceable rights issue at A$0.09 to raise up to A$4,846,875, issuing up to 53.9m shares. Funds are for more White Hat wells, working capital and costs. Shortfall is placed via Bell Potter; the offer closes 16 June.

capital raising announcement

Winchester took a 25% interest in Oden A#2, operated by Clear Fork, about 2 miles from White Hat 21#5. It reached 6,730 feet on 13 May with oil and gas shows in Strawn and Ellenburger. Winchester also earned 25% of 400 surrounding acres. Not yet tested.

drilling result

White Hat 20#2, a poor Ellenburger well in 2016, is pumping 200 bopd from a Strawn Formation sand after a US$110,000 completion shared 50:50 with CEGX. Rate is unstable, but if sustained it is a new shallower oil play across the 19,110 net acres.

well test result

The CEGX arrangement on White Hat ended on 1 March 2017. Winchester now holds 75% and operates new wells outside the drilled 40-acre units, covering 7,058 acres; CEGX keeps 25% and operates the eight existing wells. CEGX may drill one more 50:50 well.

joint venture update

Setback: the fracture stimulation on 38#1 broke into a deeper water zone, and it pumps only water at 300-400 barrels a day with no oil. 38#2 settled at 30-40 barrels a day. Winchester plans changed drilling and completion designs when it takes over as operator on 1 March.

well test result

Wells 38#1 and 38#2 both found Ellenburger pay similar to the existing wells. 38#2 tested up to 103 barrels a day from its upper interval and awaits pumping. 38#1 kept clogging during tests and will be fracture stimulated. Gross output is about 475 barrels a day.

well test result

Winchester agreed to join CEGX in seven further vertical wells at 50%, all within the high-graded 5,000 acres, to be done by 1 March 2017 when operatorship reverts to Winchester. The seismic model still needs more wells to confirm it. Gross output is 445 barrels a day.

farm in farm out agreement

Patterson 1R, the 25% interest well from the Clear Fork seismic deal, is to be plugged and abandoned. Two tests flowed 3 barrels a day and logs showed a depleted Ellenburger. Winchester's share of cost is about US$87,500, below the US$150,000 budget.

drilling result

CEGX is spudding a sixth White Hat vertical well, 38#1, with Winchester taking a 50% interest. It sits 1,200 feet north-east of the successful 21#4 well, targets the Ellenburger at about 7,000 feet, and is budgeted at US$893,000, shared equally.

drilling spud

White Hat 21#4 averaged 189 barrels of oil a day over its first 11 days at a 95% oil cut. The managing director says it appears as productive as 21#1. Gross output from five wells now exceeds 460 barrels a day.

production update

Winchester will take a 25% interest in the Clear Fork Patterson 1R well on its White Hat lease, operated by Clear Fork with 75%. Winchester's share of the US$600,000 cost is US$150,000. The arrangement arose from Winchester buying seismic data from Clear Fork.

farm in farm out agreement

White Hat 21#4 went on production on 28 July 2016, making 145 barrels of oil on 31 July with rates rising. Cost was on budget at US$975,000, so US$487,500 for Winchester's 50%. Logs show about 47 feet of upper pay and 11 feet of deeper pay.

production update

Winchester mapped an Ellenburger oil trap of at least 10,000 acres, mostly within its leases, from seismic and well data. It compares the area with the nearby Suggs field (about 10 million barrels). No reserve figure is booked; acreage is 17,736 net.

resource reserve update

First reserve booking for White Hat 21#1: gross 2P reserves 162,000 barrels (1P 84,000; 3P 515,000), so 81,000 barrels 2P net to Winchester's 50%. The 106% return is stated on the 2P figure. This follows the earlier recovery estimate of 160,000 barrels.

resource reserve update

White Hat 21#1 averaged 201 barrels of oil a day over its first 30 days (6,030 barrels total). Preliminary estimated recovery is 160,000 barrels with a 106% return. Third well, White Hat 21#2, spudded; Winchester's 50% share of cost is US$550,000.

production update

White Hat 21#1 began commercial production: 207 barrels of oil and 19 of water in 24 hours on a beam pump. This resolves the earlier test results positively. Operator CEGX proposed two more offset wells, making four, for drilling Nov 2015 to Mar 2016. Winchester holds 50%.

production update

A second, shallower 50-foot interval in White Hat 21#1 recovered 101 barrels of oil and 42 of water in about 12 hours. The operator expects full production within three weeks and plans two more back-to-back offset wells.

well test result

First test of White Hat 21#1 in the Ellenburger: swabbing a 15-foot zone recovered 106 barrels of oil and 40 of water. Production equipment is ordered and a second interval will be tested. Winchester holds 50%.

well test result

Winchester bought 100% of the mineral rights over 8,062 acres west of its White Hat leases, lifting net acreage from 9,370 to 17,432 (up 86%). Price is confidential; the company says lease prices have fallen sharply.

asset acquisition disposition

Operator CEGX is drilling White Hat 21#1, an offset about 1,500 metres north-east of White Hat 20#1, following that well's production. Winchester holds 50% and pays US$570,000 of the US$1.14m budget; target depth is 7,100 feet in the Ellenburger.

drilling spud

White Hat 20-1 began production, making 777 barrels of oil in 8 days at about 51% oil cut. Winchester (50%) calls it possibly its first commercial well and is considering an offset well, now costed at about US$800,000.

production update

March 2015 quarter: Thomas 119-1H tests of zones A, B and D produced high water (oil cut 3–10%), which the company calls unexpected and inconsistent with logs; a new completion method is next. White Hat 20#1 is on pump. Cash about A$14m; a 3D seismic program is complete.

quarterly activities report

Winchester bought a 75% interest in 7,378 acres around the White Hat 20-1 well, lifting net acreage from 3,837 to 9,370 acres. The company says the oil price fell from US$91 to US$55 in 90 days and that this lowered lease costs. It is focusing on shallow conventional Ellenburger oil.

asset acquisition disposition

Winchester bought a 50% interest in the White Hat 20#1 exploration well from Carl E Gungoll Exploration (operator, keeps 50%), about 6 miles from Thomas 119-1H. Logs show Ellenburger pay zones, and the well is being prepared for flow testing. Net budgeted cost is A$1 million.

farm in farm out agreement

Winchester issued a prospectus to raise A$15 million at A$0.20 per share (75 million shares), with up to A$5 million more in oversubscriptions (A$20 million total), ahead of an ASX listing. Minimum subscription is A$10 million. The offer is described as highly speculative.

capital raising announcement