Flow rate doubles as well testing at Winchester Energy’s Lightning prospect continues

Winchester Energy ASX WEL testing operations Lightning Prospect flow Arledge oil
Winchester Energy’s Arledge 16#2 well at the Lightning prospect in Texas is currently flowing oil to surface unassisted at a rate of 250 barrels of oil per day.

US-focused Winchester Energy (ASX: WEL) has announced its Arledge 16#2 well on the Lightning oil prospect in Texas has doubled its flow rate since the company’s last update.

The onshore oil producer began testing and completion of the lower Cisco sands in the Permian Basin well last month.

A week ago, following the fracture stimulation and swabbing of the bottom two sand intervals, the well was placed on a small quarter-inch choke and the company subsequently reported it flowing 103 barrels of oil in 20 hours. This equated to a rate of 125bbls of oil per day.

In today’s update to the market, Winchester has reported the well currently flowing oil to surface unassisted at a rate of 250bopd on a half-inch choke.

The company said the fact the well is flowing to surface without pumping or swabbing is “highly encouraging”.

“Further prospective pay zones within the well are currently being evaluated for completion and testing, which have the potential to further increase production,” it stated.

According to Winchester, an estimated 80% of the load water derived from the frack job is yet to be recovered from the well, which will continue to be closely monitored with adjustments being made to optimise production as the well cleans up.

Production facilities for Arledge 16#2 are currently being mobilised to site with oil produced to-date sitting in frack tanks ahead of imminent sale, the company added.

Mustang oilfield testing

Meanwhile, completion and testing activities are reportedly underway at the Mustang oilfield, targeting the oil-producing Strawn Fry sand member at the recently drilled White Hat 20#5 well.

According to Winchester, the well was successfully fracked last week and is currently being swabbed back for production.

About 30% of the load water from the fracture stimulation has been recovered so far.

“Encouragingly, an oil cut has been observed and is increasing,” Winchester reported, saying the well’s performance is consistent with previous Mustang oilfield wells.

Improved production

Winchester has also released its latest financial report for the January to June 2019 half year, describing it as a “transformative period” with ongoing drilling and completion activities resulting in improvements in both production and cash flow.

Total production for the half year (on a gross 100% working interest basis) across all wells in Winchester’s Permian Basin acreage came to 28,751 barrels of oil, up 30% from the 22,072bbls recorded in the July to December 2018 period.

This boost was due to production almost doubling from March 2019’s total of 9,838bbls to 18,913bbls for the June quarter, thanks to the White Hat 20#3 well coming online in May.

In terms of Winchester’s net (working interest) production, quarterly output increased from 2.4 times from 4,894bbls in March to 12,087bbls in June.

Calculating the figures at a daily rate, the company’s net average production for the June quarter of 133 barrels of oil per day works out to be 2.4 times that of the March quarter’s net average of 54bopd.

In addition, Winchester’s net oil sales rose 2.5 times from 5,193bbls in the March quarter to 11,710bbls for June.