Past year: ▼ 50%(0.10c – 0.20c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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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26 May 2017capital raising announcement● Neutral
Prospectus lodged for the 1-for-4 rights issue at A$0.09 to raise about A$4,846,875. Offer opens 6 June and closes 16 June, with new shares trading from 26 June. This is the formal document for the raising already announced the same day.
16 May 2017drilling result▲ GoodMajor
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.
15 May 2017production update▲ Good
Gross oil output across the eight CEGX-operated White Hat wells rose to 507 bopd (554 boepd with gas) from 393 bopd in the March quarter, up over 29%. Gains came from the 20#2 Strawn completion and chemical treatments clearing scaling in four wells.
19 Apr 2017well test result▲ GoodMajor
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.
3 Apr 2017annual report● Neutral
Audited annual report for the year to 31 December 2016 lodged, reported in US dollars. It shows 19,110 net acres and 2016 gross oil production of 126,224 barrels (63,112 net), with quarterly output rising to 37,876 barrels in December. Financial statements were not in the extract.
3 Apr 2017other● Neutral
Appendix 4G corporate governance checklist lodged with the annual report for the year ended 31 December 2016. It points to the governance statement on pages 55 to 61 of the annual report. Administrative, no new operating or financial information.
27 Mar 2017well test result▼ Bad
White Hat 21#5 went on production 5 March 2017, averaging 87 bopd in week one and hitting 150 bopd on 9 March, then fell to 25-40 bopd. CEGX is investigating mechanical causes, including chemical plugging, and plans chemical treatment. Winchester holds 50%.
10 Mar 2017other● Neutral
Winchester notes a magazine article about it in Resource Global Network, titled 'Australian Junior taking on the Permian Heavyweights', and links to it. Promotional only, with no new operating or financial information.
10 Mar 2017security holder rights change● Neutral
Winchester granted 5,000,000 unlisted options to three senior consultants (Idstein 3.5m, Gard 1m, Hasanov 0.5m) at A$0.12, expiring 31 January 2022, for nil consideration. Stated purpose is incentive for the extra workload of operating White Hat since 1 March 2017.
1 Mar 2017joint venture update▲ GoodMajor
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.
16 Feb 2017investor presentation● Neutral
Presentation for shareholder meetings in Perth, Sydney and Melbourne, mostly repeating known facts. Cash is A$3.1m, gross output 410 barrels a day, with no debt. It aims for a well every three months funded from cash flow once Winchester operates, possibly using short multi-lateral wells.
20 Jan 2017well test result▼ BadMajor
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.
30 Dec 2016drilling spud● Neutral
White Hat 21#5 spudded on 27 December, the eighth vertical well on the lease. Winchester holds 50% of the US$893,000 budget. It is 1,669 feet east of 21#4, now making 230 barrels a day, with depth of about 7,100 feet expected within 14 days.
9 Dec 2016other● Neutral
Share registry Automic is moving its Perth office to 267 St Georges Terrace from 9 December 2016. Other contact details are unchanged. Administrative notice with no bearing on the company's operations.
28 Nov 2016well test result▲ GoodMajor
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.
29 Sept 2016farm in farm out agreement▲ GoodMajor
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.
26 Sept 2016drilling spud● Neutral
White Hat 38#2 spudded, becoming the seventh vertical well on the White Hat lease. Winchester holds 50%, with a US$893,000 budget shared equally. It is 1,470 feet east of 38#1, with proposed depth of about 7,100 feet targeting the Ellenburger.
23 Sept 2016drilling progress report● Neutral
White Hat 38#1 reached 7,070 feet on 19 September. After logs and cuttings, the partners cased it to test the Ellenburger, with perforation and acid testing due in a few days. No flow results yet.
14 Sept 2016half year report● Neutral
Half-year report to 30 June 2016 lodged, in US dollars. Five White Hat wells are producing, 38#1 is drilling, and the 7 days to 7 September averaged 438 barrels a day gross. Cumulative White Hat output exceeds 105,000 barrels. Text is truncated, so financial figures were not seen.
13 Sept 2016drilling result▼ BadMajor
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.
6 Sept 2016drilling spud▲ GoodMajor
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.
30 Aug 2016investor presentation● Neutral
Presentation for investor meetings in Sydney, Melbourne and Perth, repeating known facts. Gross output is 462 barrels a day from five wells; cash is A$5.5m. It cites potential for 125 well locations and a 79% pre-tax return at US$45 oil.
29 Aug 2016production update▲ GoodMajor
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.
26 Aug 2016drilling spud● Neutral
The Patterson 1R well, in which Winchester holds 25%, spudded on 22 August 2016 and was drilling at 2,800 feet on 24 August. The Ellenburger target is expected at about 6,600 feet.
16 Aug 2016farm in farm out agreement▲ GoodMajor
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.
2 Aug 2016production update▲ GoodMajor
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.
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.
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.
