Winchester Energy encounters further oil in Lightning well

Winchester Energy oil Lightning well ASX WEL Lower Cisco sands
Winchester Energy has perforated a 25-foot oil zone above currently producing intervals in its Lightning discovery well in Texas.

Onshore oil producer Winchester Energy (ASX: WEL) has perforated an additional oil zone above the current producing intervals of the Lower Cisco sands in its Lightning discovery well in Texas.

At the end of November, the US-focused company had announced plans to assess the production and reservoir characteristics of additional zones in the well, known as Arledge 16#2, following its successful completion work on the Lower Cisco sands.

Winchester was targeting a 340-foot gross interval above these sands, between 4,735-5,075ft.

In an update today, the company confirmed it has encountered an additional 25ft section within the gross pay. The interval was swabbed at a rate of 100-125 barrels of oil per day with no water and minor gas.

As previously announced, this additional production will be comingled with production currently being derived from the first two intervals of the Lower Cisco sand.

The well will now be pumped for at least five days, prior to a fourth interval being perforated above this latest zone between 5,010-5,033ft.

Upper sands potential

In addition to the Lower Cisco sands, Winchester believes an Upper Cisco sand interval between 4,735-4,900ft provides “significant additional potential upside and is coincident with good oil and gas shows”.

The company has identified a total of 100ft of potential pay with more sand and “very good” oil shows in several intervals in these upper sands.

Winchester said it expects to comingle any potential production from these intervals.

According to the company, the revised total gross pay interval of the two Cisco sand units (upper plus lower) is 506ft with net sand of 25-30%.

December spuds

Winchester is also planning to spud a new step-out well at the Lighting prospect during December. This well is expected to target the same Cisco sands as the Arledge 16#2 discovery well.

Meanwhile, at the company’s Mustang oilfield within the White Hat Ranch oil lease, the White Hat 39#2 is scheduled to begin drilling “within a week”.

Another Mustang development well, White Hat 20#6, is due to spud in January.

In addition, the recently drilled White Hat 20#4 well has been fracked and is currently being swabbed.

“Initial observations of the frack suggest that it has penetrated a more permeable zone than anticipated, which potentially bodes well for future production,” Winchester reported.