Winchester Energy confirms oil pay at White Hat 20#4 as revenue soars
Texas-focused oil explorer Winchester Energy (ASX: WEL) has confirmed oil pay at its White Hat 20#4 well within its Mustang oil field, while reporting a massive boost in revenue for the September quarter.
The White Hat 20#4 well has now reached a total depth of 6,206 feet and is targeting the oil producing Strawn Fry Sand within the company’s Permian Basin acreage.
Wireline logs have been run into the well and have confirmed a gross Fry Sand thickness of 25 feet, with no indication of water in the sand.
As a result, Winchester has begun production casing and plans to perforate and fracture stimulate the Fry Sand in a similar method to the successful White Hat 20#2, 20#3 and 20#5 wells.
White Hat 20#4 is Winchesters fourth consecutive well to be drilled within its Mustang oil field, with the well located 1,200ft south-west of the producing White Hat 20#3 well.
Aggregate production from White Hat 20#2, 20#3 and 20#5 now tops 85,000 barrels of oil (gross) and has generated revenue for Winchester.
Winchester owns 75% of White Hat 20#4, with private company Carl E Gungoll Exploration LLC possessing a 25% working interest in the asset.
Revenue and oil production
With three producing wells in the Mustang field during the September quarter, Winchester achieved net oil and gas revenue of US$806,218 (A$1.19 million) for the period – a 65% increase on the June quarter, which generated US$488,020.
Underpinning the revenue boost was average daily oil production (net to Winchester) of 223 barrels of oil per day – up 68% on 133bopd in the previous period.
According to Winchester, oil production significantly rose in September to 358bopd.
The company expects this will grow further as White Hat 20#5 and Arledge 16#2 are ramped up to full production and other wells come online.
By the end of September, Winchesters oil and gas assets across the Permian Basin had produced an aggregated total of 375,133bbl of oil and 194 million cubic feet of gas.
Within the Mustang field, Winchester is identifying three further well locations and secure permits.
Drilling at other prospects has been planned, including: Thomas Ranch, Spitfire, Lightning, Eldorado and Bridgford.
Across the prospects the formations being targeted are Fry Sand, Cisco Sands, San Angelo, Strawn, and Ellenburger.
The prospects have combined prospective resources of 22.7MMboe (high estimate P10), with a low estimate P90 of 4.265MMboe.