Winchester Energy confirms substantial oil and gas shows at newest well in Mustang field

Wireline logging of a newly-drilled well at Winchester Energy’s (ASX: WEL) Mustang oil field in Texas has demonstrated “good to excellent” oil and gas shows and some of the highest levels of porosity found in the reservoir to date.

Drilling at White Hat 20#6 (in which Winchester has a 75% working interest) indicated 24 feet of net oil pay within the Fry Sand, with a gross thickness of 30ft and good porosity of up to 16% through to a depth of 6,056ft.

The result is considered superior to the last three Mustang wells drilled and compares favourably to an interval found at the previously-drilled White Hat 20#3 which recorded 28ft of net oil pay.

The results effectively extend the oil field with an increased net thickness to the north-west.

Production casing is being run ahead of perforation and fracture stimulation of the Fry Sand within the next two weeks.

Winchester will employ a similar design used at the White Hat 20#3 and 20#5 wells.

Mustang development

Winchester is continuing to develop the Mustang oil field with highly-commercial, low-cost and low-risk wells designed to significantly increase oil production.

White Hat 20#6 is the sixth well drilled in the field where aggregate gross production to date exceeds 110,000 barrels of oil.

In December, the field’s White Hat 39#2 well achieved similar “excellent oil and gas shows” with 30ft of gross pay in the Strawn Sand.

Potential pay was also logged in the Ellenburger, Crystal Falls and Cisco formation of the same well.

With completed wells costing less than $1 million and oil sales occurring almost immediately upon completion of the wells, Winchester said development of the oil field remains a “highly attractive” proposition.

White Hat 20#6 is located in the large sedimentary Permian Basin in Texas.

It is shared with private company Carl E Gungoll Exploration LLC which retains a 25% interest.