15 June 2021drilling progress report▲ Good
McLeod 1705 is drilling at 5,645 ft with intermittent strong gas shows and fluorescence over 500 ft of the Upper Cisco Sands. The Cambrian target is expected within days; no test results yet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
4 June 2021drilling spud● NeutralMajor
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.
31 May 2021drilling progress report● Neutral
The Blue Line Rig No. 7 reached the McLeod 1705 site and is rigging up, with spud expected mid-week. The 7,800 ft well (100% WI) will test the Cambrian Sands at Bast Deep.
26 May 2021capital raising announcement● NeutralMajor
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.
What it means for a shareholder
313m new shares at A$0.016 to raise about A$5.0m. That's 31% dilution: every existing holder's slice gets 31% smaller. If you held A$1,000 of shares (62,500 at the issue price), your slice goes from 0.00904% to 0.00623% of the company. To keep it you'd need 28,263 more shares - about A$452 at the issue price.
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20 May 2021well test result▲ Good
After an electric submersible pump was installed, Bast #1 now makes 545 barrels of fluid a day including 25 barrels of oil, from a ~US$120,000 workover. Four more wells are candidates, and Bast Deep is still due to drill in June.
30 Apr 2021director officer appointment▼ BadMajor
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.
27 Apr 2021well test result▲ Good
The Bast #1 workover (92% WI) produced 35 barrels of oil and 143 barrels of load water in its first 23 hours on pump, beating pre-workover estimates. Bast Deep drilling is now planned for June.
15 Apr 2021drilling scheduled▲ GoodMajor
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.
31 Mar 2021other● Neutral
Corporate governance statement as at 24 March 2021, lodged with the annual report. It notes the board has no women and that the nomination committee does not meet independence recommendations. Administrative filing with no operational or financial news.
31 Mar 2021other● Neutral
Appendix 4G key to the corporate governance statement, current as at 24 March 2021, lodged with the annual report. Administrative filing with no operational or financial news.
31 Mar 2021annual report● Neutral
Annual report for 2020: net working-interest production was 80,321 boe, up from 66,239 bo in 2019, and sales revenue was US$2.22m (A$2.93m). The company called 2020 challenging because of Covid-19 and the oil price fall.
17 Mar 2021investor presentation● Neutral
Investor conference presentation repeating known facts: 187 boepd net, reserves and resources of 11.6 mmboe, no debt. It adds cash of A$2.07m, 691m shares and a share price of A$0.023 (market value A$15.9m), showing cash down from A$5.4m at March 2020.
16 Mar 2021resource reserve update▼ BadMajor
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.
28 Jan 2021quarterly activities report▼ BadMajor
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.
18 Jan 2021director officer appointment● NeutralMajor
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.
21 Oct 2020drilling result▼ BadMajor
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.
1 Oct 2020admin correction● Neutral
Winchester has moved its Perth registered and principal office to 24 Outram Street, West Perth, with new phone and fax numbers. Administrative notice only.
15 Sept 2020drilling scheduled▲ GoodMajor
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.
14 Sept 2020investor presentation● Neutral
Presentation for the 15-16 September 2020 Resurgence Conference. Repeats known facts: 310 bopd gross and A$707K revenue in the June quarter, 11.2 mmboe reserves and resources, no debt, and 18,400 net acres. No new information visible in the readable text.
11 Sept 2020half year report● Neutral
Half-year report to 30 June 2020: average net oil output was 249 bopd. Operations review repeats the recompletion program, 3D seismic reprocessing and talks on new opportunities. Financial figures were truncated and not seen.
27 July 2020drilling scheduled▲ Good
White Hat 2004 (now WEL 100% after agreement with CEGX) will be re-entered to test 35 ft of potential net Cisco pay at about US$75,000 cost. Four wells will also connect to gas sales; McLeod 1703 tie-in costs about US$5,000, with payback expected in 14 days.
11 June 2020production update▲ Good
Winchester says lifting costs are down to US$2.46/barrel and it stored oil from 15 May to sell from 1 June, expecting about US$15/bbl more on 222 bopd net May production. It plans low-cost recompletions and is reviewing new project opportunities.
3 June 2020security holder rights change● Neutral
New company constitution lodged, adopted by special resolution at the 29 May 2020 AGM. Text shown is the document itself, with no stated change to shareholder economics.
25 May 2020resource reserve update▲ GoodMajor
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.
1 Apr 2020other● Neutral
Corporate governance statement as at 27 March 2020, an administrative filing. It notes some departures from ASX recommendations, including no women on the board and a nomination committee of two directors.
1 Apr 2020annual report▲ Good
Annual report for 2019: net oil output was 66,239 barrels, with sales revenue of US$2.76m (A$4.57m). Describes 2019 as transformative, with most oil now from the Mustang field and Lightning Cisco results encouraging. Lease area stated as 17,137 acres.
1 Apr 2020other● Neutral
Appendix 4G governance checklist as at 27 March 2020, lodged with the annual report. Administrative filing with no new operational or financial information.
1 Apr 2020investor presentation● Neutral
Presentation prepared for a cancelled investor conference, framing Winchester as positioned for tough times: over A$6.5m cash (29 Feb 2020), no debt, and stated profitability at $25 oil. Largely repeats previously known facts.
26 Mar 2020director officer appointment● Neutral
Non-executive director John Kopcheff, a former chairman, resigns effective 31 March 2020 but stays as unpaid technical advisor. James Allchurch, who has provided corporate and investor services to Winchester since late 2016, joins as non-executive director from 1 April 2020.
25 Mar 2020production update● Neutral
White Hat 20#6 is on pump after fracking at 104 bopd and 26 bwpd (80% oil cut), with Mustang gross output over 130,000 barrels. Lightning is weaker: Arledge 16#2 averaged only 28 bopd over its last 30 days and McLeod 17#3 is flowing at low rates.