Past year: ▼ 50%(0.10c – 0.20c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
15 Jan 2018drilling progress report▼ Bad
Production testing of White Hat 38#3ML over three weeks was hampered by repeated electric pump failures and overheating. The pump has been removed and a conventional rod pump is being installed. No production figures yet, so the three-lateral result remains unproven.
20 Dec 2017asset acquisition disposition● NeutralMajor
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.
15 Dec 2017farm in farm out agreement● NeutralMajor
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.
29 Nov 2017capital raising announcement▲ GoodMajor
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.
What it means for a shareholder
35.0m new shares at A$0.100 to raise about A$3.5m. That's 12% dilution: every existing holder's slice gets 12% smaller. If you held A$1,000 of shares (10,000 at the issue price), your slice goes from 0.004% to 0.00351% of the company. To keep it you'd need 1,399 more shares - about A$140 at the issue price.
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23 Nov 2017drilling result▲ GoodMajor
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.
2 Nov 2017drilling result▲ Good
Second lateral (Leg 2) at White Hat 38#3ML drilled 470 ft with about 200 ft of good oil and gas shows, at about US$200,000. Leg 3 has started, targeting a different Ellenburger interval. Still no production rates; acid treatment follows all legs.
30 Oct 2017quarterly activities report▼ Bad
September 2017 quarter gross oil output fell to 27,806 barrels from 39,533, blamed on normal decline and well treatment downtime. Revenue was US$486,929. Reports Leg 1 success and 39#1 results already announced.
30 Oct 2017quarterly activities report● Neutral
Cash flow report: cash fell to US$2.256m from US$2.931m, with operating outflow of US$1.075m and US$360k raised from shares. No debt. Next quarter's outflows are estimated at US$1.15m.
23 Oct 2017investor presentation● Neutral
Broker presentation repeating known themes: Permian focus, no debt, multi-lateral trial, up to 15 million barrels Ellenburger target. It shows cash of A$2.3m at 30 September 2017 and about 250 million shares. No new results.
23 Oct 2017investor presentation● Neutral
Presentation for a Melbourne and Sydney investor roadshow, appearing to repeat the broker presentation of the same day (A$2.3m cash, no debt, 15 million barrel target). No new information.
20 Oct 2017drilling progress report● Neutral
Drilling of the second lateral (Leg 2) at White Hat 38#3ML has started, in the same upper Ellenburger zone but the opposite direction. The Managing Director expects it to build on Leg 1. No new results.
18 Oct 2017well test result▲ GoodMajor
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.
12 Oct 2017director officer appointment● Neutral
Company Secretary Nicholas Calder resigns and Lloyd Flint, who has over 20 years' experience in mining and oil and gas, is appointed effective 27 October 2017. Administrative change.
28 Sept 2017other● Neutral
Winchester says it commissioned an independent research report by analyst Peter Strachan, now on its website. The announcement itself contains no results or figures.
25 Sept 2017drilling progress report● Neutral
Drilling of the first of four short-radius laterals at White Hat 38#3ML (60% WI) has started, after the Harvey delay flagged earlier. Each leg will be tested, and the whole operation is estimated to take six weeks.
20 Sept 2017drilling result▲ GoodMajor
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.
14 Sept 2017half year report● Neutral
Reviewed half-year report to 30 June 2017 lodged, in US dollars. The extract repeats operations and production already reported, including the 1 March shift to 75% WI. Financial statements were not in the extract.
13 Sept 2017investor presentation● Neutral
Presentation by new Chairman John Kopcheff at the Good Oil Conference. It repeats known themes: Permian focus, no debt, multi-lateral drilling, and a potential gross 15 million barrel Ellenburger target across an interpreted 40 sq km trap. No new results.
12 Sept 2017director officer appointment▲ GoodMajor
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.
23 Aug 2017drilling scheduled● Neutral
Short-radius lateral drilling at White Hat 38#3ML will start 28 August 2017, targeting four zones of about 500 feet each in the Ellenburger. The well budget is now stated as US$1.6m. White Hat 39#1 is still drilling toward 7,100 feet.
16 Aug 2017drilling spud● NeutralMajor
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.
7 Aug 2017drilling progress report● Neutral
White Hat 38#3ML reached 7,000 feet with oil and gas shows, and is now being logged before the laterals. The rig will first drill White Hat 39#1, a Winchester-operated vertical Ellenburger test to the west, then return for the laterals.
31 July 2017quarterly activities report▲ Good
June 2017 quarter gross oil output rose 38% to 39,533 barrels, mainly from the White Hat 20#2 Strawn well. Revenue was US$717,890 at US$44.94 a barrel. Net acreage 19,210. Oden A#2 and 38#1 results are noted, and 38#3ML has spudded.
25 July 2017drilling spud▲ GoodMajor
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.
20 July 2017well test result● Neutral
White Hat 38#1, re-completed in the Strawn after the failed Ellenburger, is producing 28 bopd, at a cost to Winchester of US$175,000. Oden A#2 (25% WI) is producing 21 bopd from the Ellenburger, costing US$170,000; Strawn re-completion is being assessed. Modest results.
28 June 2017other● Neutral
Updated top 20 shareholder list and capital structure after the recent share issue. Issued capital is 244,691,332 shares; China Leader Group is largest holder at 19.58%. Administrative, no new operating information.
26 June 2017capital raising announcement● NeutralMajor
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.
13 June 2017capital raising announcement● Neutral
Supplementary prospectus for the A$0.09 rights issue (up to A$4,846,875) extends the close from 16 to 21 June 2017. It clarifies shortfall allocation and says director Larry Liu is a nominee of largest shareholder Yang Xiangyang, planning to take up 14,028,747 shares.
29 May 2017drilling progress report● Neutral
CEGX will abandon the Ellenburger in White Hat 38#1, which only made water, and re-complete it in June with a two-stage frack of two Strawn intervals. Oden A#2 is starting a three-stage Ellenburger completion this week. No new flow results.
26 May 2017capital raising announcement● NeutralMajor
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.
What it means for a shareholder
53.9m new shares at about A$0.0899 to raise about A$4.8m. That's 20% dilution: every existing holder's slice gets 20% smaller. If you held A$1,000 of shares (11,121 at the issue price), your slice goes from 0.00516% to 0.00413% of the company. To keep it you'd need 2,783 more shares - about A$250 at the issue price.
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