Past year: ▼ 50%(0.10c – 0.20c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
5 June 2019drilling scheduled▲ GoodMajor
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.
27 May 2019flow test result▲ GoodMajor
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.
8 May 2019well test result● Neutral
White Hat 20#3 and White Hat 38#3ML were both fracked in the Strawn; 20#3 swabbed 300 barrels at a 10% oil cut and 38#3ML recovered 1,100 barrels at a 5-10% oil cut. 39#1L hit mechanical problems with 124 barrels of oil so far. No stable rates yet.
1 May 2019security holder rights change● Neutral
30m unlisted options at A$0.25 expired unexercised on 30 April 2019, as did milestone convertible notes whose milestones were not met. The company will repay A$6,000 of unsecured debt to noteholders. This removes those securities from the share structure.
30 Apr 2019quarterly activities report▼ Bad
March 2019 quarter revenue was US$192,198 at an average US$47.42/bo, down from US$227,347 in December. Gross oil production fell to 9,838 bo from 10,726, a continued decline. White Hat 20#3 is awaiting frack; 39#1L has been fracked.
26 Apr 2019well test result● Neutral
White Hat 39#1L was fracked in the Strawn and put on pump, recovering 49 barrels of oil and 540 of frack water; about 1,500 barrels of frack water remain. Winchester's share of frack cost is US$40,000. Stable flow rates are not yet known.
15 Apr 2019well test result▲ Good
Early testing of the Strawn Sand at White Hat 20#3 recovered 45 barrels of oil, with an oil cut up to 47%, from acid flush and swabbing. Management calls it encouraging and above White Hat 20#2; a frack is expected in about ten days. No flow rate yet.
11 Apr 2019well test result▼ Bad
Swabbing of the Ellenburger at White Hat 20#3 gave no inflow, indicating tight rock at this location, so the bonus target did not work. Completion and testing of the main Strawn sand has started, to be followed by a frack.
8 Apr 2019drilling result▲ Good
White Hat 20#3 reached 6,796 ft with oil shows over 50 ft of the Ellenburger; swabbing began to test flow. A frack crew is secured to test and stimulate the Strawn sand within weeks, as was done at White Hat 20#2 (200 bopd after frack).
1 Apr 2019drilling result▲ GoodMajor
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.
29 Mar 2019annual report● Neutral
Annual report for 2018. It records 2018 gross oil production of 50,009 bo (25,004 net) and 318,918 bo since inception, and says the company refocused on vertical drilling after the mid-2018 second Ellenburger horizontal well's short laterals failed to meet expectations. Financial statements not visible in the excerpt.
29 Mar 2019annual report● Neutral
Appendix 4G, the standard checklist pointing to where corporate governance disclosures can be found, lodged with the annual report for the year ended 31 December 2018. Administrative with no new substance.
29 Mar 2019drilling progress report▲ Good
Further oil and gas shows were seen in the Caddo Formation (6,565-6,650 ft), a non-target zone, as wireline logging began at White Hat 20#3. Logs are due early next week; the well will then be cased and deepened to the Ellenburger. No new result yet.
29 Mar 2019annual report● Neutral
Corporate governance statement released with the annual report. It lists departures from ASX recommendations, including no women on the board or in senior executive roles and a remuneration and nomination committee of only two members. Administrative; no new business information.
26 Mar 2019drilling progress report▲ Good
White Hat 20#3 hit the primary Strawn sand at 5,920 ft, 20 ft high to prediction, with good to excellent oil shows and 10-18% visual porosity, above White Hat 20#2. Net sand is estimated at 35-45 ft. Shows only; logs and tests are still needed.
25 Mar 2019drilling progress report▲ Good
White Hat 20#3, the first Mustang prospect well, is drilling at 5,645 ft with oil shows and elevated gas in the Wolfcamp 'D' shale (5,550-5,610 ft), similar to neighbouring White Hat 20#2. Primary Strawn sand target not yet reached; total depth of 6,870 ft expected in about 4 days.
19 Mar 2019drilling spud▲ GoodMajor
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.
18 Feb 2019drilling scheduled▲ Good
White Hat 20#3, the first Mustang prospect well, was set to spud on 11 March 2019. Winchester put its chance of finding oil at 58% and the prospect's target at 2 million barrels (P50). CEGX took 25% and Winchester held 75%. A White Hat 39#1 frack was scheduled for March.
7 Feb 2019capital raising announcement▼ BadMajor
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.
What it means for a shareholder
42.4m new shares at A$0.020 to raise about A$847,982. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (50,000 at the issue price), your slice goes from 0.0175% to 0.0153% of the company. To keep it you'd need 7,435 more shares - about A$149 at the issue price.
Create a free account to see this worked out for your own holding.
31 Jan 2019quarterly activities report● Neutral
December 2018 quarter gross oil production eased to 10,726 bo (from 11,346), with revenue of US$227,347 at US$54.00 a barrel. The prospect drilling and the White Hat 39#1L frack both wait on the rights issue completing; Arledge lease status is still under review.
25 Jan 2019regulatory community update▲ Good
The McLeod lease owner has confirmed the 4,246-acre lease is in good standing, clearing the way for the El Dorado prospect drilling. This resolves half of the lease worry; the Arledge owner has not yet replied, though lawyers say it is good.
18 Jan 2019capital raising announcement● Neutral
Rights issue closing date extended from 23 January to 4 February 2019, with issue now expected around 11 February. Administrative, though it may suggest slower uptake (inference).
3 Jan 2019capital raising announcement● Neutral
Confirms the rights issue timetable, with closing on 23 January 2019 and shortfall shares open to additional applications. Repeats earlier dates; no new substance.
24 Dec 2018regulatory community update▼ BadMajor
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.
17 Dec 2018capital raising announcement● Neutral
Administrative notice that the rights issue offer documents have been sent to eligible shareholders (A$0.02, 1-for-2, about A$2.85m). No new information.
11 Dec 2018investor presentation● Neutral
Presentation supporting the rights issue repeats the 7.8 million barrel prospective resource and a three-well program from February 2019. It shows cash of A$0.8m at 30 September 2018, no debt and about 285m shares, rising to 428m if the raising is fully taken up. Nothing new.
7 Dec 2018capital raising announcement● Neutral
Shareholder notice for the A$2.85m rights issue at A$0.02: up to 142.6m new shares, with A$2.3m for prospect drilling and A$439,988 for working capital. CPS Capital manages the shortfall, with a 30m-share top-up to CPS if shortfall is smaller. Offer closes 23 January 2019.
7 Dec 2018capital raising announcement● NeutralMajor
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.
14 Nov 2018well test result▼ Bad
After about a month shut in for the pressure test, White Hat 39#1L restarted at 30 bopd and has declined to about 11 bopd. Data suggests a frack may help; likely January 2019. USEC's Thomas 119-1H dropped the Odom Lime test and awaits a frack crew, expected December.
31 Oct 2018quarterly activities report▼ Bad
September 2018 quarter gross oil production fell again to 11,346 bo (from 12,660), with revenue of US$224,206 at US$54.18 a barrel. White Hat 39#1L is in a pressure build-up test to choose between a frack and a larger acid job.
