Winchester Energy (ASX: WEL) has recovered “significant” oil within the Arledge 16#2 well’s Lower Cisco Sands, which Winchester managing director Neville Henry claims is “extremely encouraging” and potentially “game changing” for the company.
Arledge 16#2 is part of Winchester’s Lightning prospect within its Permian Basin acreage in Texas.
Completion activities have started at Arledge 16#2, with oil recovered following perforation, acidization and swabbing of the Lower Cisco Sand’s bottom two intervals.
According to Winchester, the combined swabbing rate from the two intervals has returned about 80 barrels of oil per day.
Winchester pointed out the oil recovery represents unfracked and unstimulated production – with the company anticipating fracking will “significantly” enhance the flow.
A further two upper intervals will be tested, with Winchester expecting these intervals are more prospective given the higher thickness, sand content, and superior wireline and mud log responses.
Additionally, wireline log interpretation and mud log shows indicated a further 70 feet of thin bedded oil pay below the lowest interval at 5,131ft in the Lower Cisco Sand.
“The initial Lower Cisco Sands testing is extremely encouraging, if not game changing, for Winchester and we look forward to the frack of intervals one and two and the testing of the remaining Cisco sand intervals,” Mr Henry said.
Winchester spudded Arledge 16#2 in early July, with the well designed to twin Arledge 16#1 that was undertaken in 1982 and encountered 300ft of laminated sands, with wireline logs and oil shows revealing potential gross oil pay.
Within a week of spudding Arledge 16#2, Winchester encountered oil and gas shows.
With today’s positive results continuing the exploration success at the well, Winchester plans to fracture stimulate intervals one and two in the Lower Cisco Sands.
The company will also target the potential 70ft of thin bedded pay immediately below interval one.
Following fracking of intervals one and two, Winchester will then test the upper intervals three and four.
Meanwhile, in the Upper Cisco Sands, Winchester has delineated a 165ft interval between 4,735ft and 4,900ft.
FMI resistivity testing of the interval has resulted in 50ft of net pay.
Winchester will evaluate the net oil pay and production potential in the Upper Cisco Sands via a program of selective perforations, acidization and stimulation.