4 July 2016drilling result▲ Good
White Hat 21#4 reached 7,042 feet with two oil zones similar to the best well, 21#1, and fluid losses suggesting good permeability. Casing is run and completion testing was due to start 5 July; results to follow.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
15 June 2016drilling progress report● Neutral
White Hat 21#4 spudded on 9 June 2016 and was drilling at 3,407 feet, heading for a proposed 7,300 feet. Winchester's 50% share of the US$975,000 cost is US$487,500.
24 May 2016drilling scheduled● Neutral
Operator CEGX will spud a fifth White Hat well, 21#4, within 7 days, 1,200 feet east of 21#1. Budget is US$975,000 with Winchester paying 50%. Proposed depth is 7,300 feet. This is the offset well flagged since late 2015.
9 May 2016resource reserve update▲ GoodMajor
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.
29 Apr 2016quarterly activities report● Neutral
March 2016 quarter: three wells averaged 300 barrels a day gross; cash fell to about A$6.84m from A$8.0m. White Hat 20#2 was fracture stimulated on 7 April, with results awaited. White Hat 21#4 is planned for May at 50% interest. Net acreage is 17,736.
29 Apr 2016annual report● Neutral
Re-lodgement of the FY2015 annual report (chairman's letter dated 31 March 2016) already lodged on 31 March. It repeats about 50,000 barrels gross to 13 March, 50% interest in the wells, and the 50% cut to director fees. Text is truncated; no new figures seen.
12 Apr 2016production update▲ Good
A chemical treatment lifted White Hat 20#1 from 11 to an average 58 barrels of oil a day, above its first-30-day rate. Combined gross output from the three producing wells is about 350 barrels a day, and the low-cost fix may apply to other wells.
1 Apr 2016other● Neutral
Corporate governance checklist (Appendix 4G) lodged with the annual report, dated 31 March 2016. Administrative filing with no operational or financial news.
1 Apr 2016annual report● Neutral
Annual report for the year to 31 December 2015, in US dollars. The chairman says three producing wells have made about 50,000 barrels gross to 13 March 2016, and cost cuts continue, including a 50% cut to non-executive director fees. Strategy stays focused on low-cost conventional Ellenburger oil.
1 Feb 2016quarterly activities report● Neutral
December 2015 quarter: White Hat 21#1 averaged 202 barrels a day, while White Hat 21#2 is weaker at about 48 barrels a day, which the company attributes to lower permeability. A full cost-cutting program was implemented, with director fees cut 50%. Two later wells may be delayed because of low oil prices. 505 acres bought in Coke County.
1 Feb 2016quarterly activities report▼ Bad
December 2015 quarter cash report: cash fell to A$8.0m from A$10.5m, with an operating outflow of A$1.02m. There was no lease spending in the quarter (A$1.17m was year to date). Planned spend next quarter is A$1.075m, and there is no debt.
12 Jan 2016production update● Neutral
White Hat 21#2 started production on 5 January 2016, with oil reaching 89 barrels a day by 10 January while water fell to 187 barrels a day. Rates are still unstable. This is well below the roughly 200 barrels a day from White Hat 21#1.
6 Nov 2015drilling result▲ Good
White Hat 21#2 reached 7,414 feet; logs and oil and gas shows led to production casing being run, with testing planned within two weeks. The rig moved to spud White Hat 20#2, 1,200 feet west of White Hat 21#1. Winchester holds 50% in each.
4 Nov 2015resource reserve update▲ GoodMajor
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.
2 Nov 2015quarterly activities report● Neutral
September 2015 quarter: White Hat 21#1 began commercial production and White Hat 21#2 spudded on 20 October. Gross production was 4,920 barrels. Cash was about A$10.5m, down from A$12.29m, with no debt. Net acreage is 17,432.
22 Oct 2015production update▲ GoodMajor
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.
24 Sept 2015production update▲ GoodMajor
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%.
11 Sept 2015half year report● Neutral
Audited half-year report to 30 June 2015, in US dollars: net loss US$502,289 (US$381,646 a year earlier). Cash fell to US$9.41m from US$12.45m at 31 December 2014. White Hat 21#1 drilling and Thomas 119-1H delays are restated.
2 Sept 2015well test result▲ GoodMajor
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.
28 Aug 2015well test result▲ GoodMajor
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%.
4 Aug 2015asset acquisition disposition▲ GoodMajor
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.
3 Aug 2015quarterly activities report● Neutral
June 2015 quarter cash report: cash fell to A$12.29m from A$13.98m, with operating outflow of A$1.59m. Planned spend next quarter is A$950,000. No debt.
3 Aug 2015quarterly activities report● Neutral
June 2015 quarter: White Hat 20#1 sold 2,322 barrels at an average US$51; White Hat 21#1 reached total depth, logs show Ellenburger pay and it will be completed. Thomas 119-1H still shows high water and delays, with only six zones tested. Cash A$12.29m.
16 July 2015drilling spud▲ GoodMajor
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.
10 July 2015security holder rights change● Neutral
9,833,334 shares were released from escrow on 31 May 2015, reported with an Appendix 3B. This is the first of the escrow releases flagged earlier and adds to shares free to trade.
26 May 2015investor presentation● Neutral
Roadshow presentation for Sydney, Melbourne and Perth. It repeats known facts: 9,370 net acres, the White Hat 20#1 result of 777 barrels in 8 days, and cash of about A$13m. No new information.
12 May 2015production update▲ GoodMajor
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.
30 Apr 2015quarterly activities report▼ BadMajor
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.
1 Apr 2015annual report● Neutral
Annual report lodged for the nine months to 31 December 2014, now reported in US dollars. The chairman's letter repeats the A$20m IPO and that both wells are still flow testing the Ellenburger; no new results in the text provided.
1 Apr 2015other● Neutral
Corporate governance checklist (Appendix 4G) lodged with the annual report, dated 31 March 2015. Administrative filing with no operational or financial news.