With fracking of the Strawn Formation completed at the existing White Hat 39#1L well, Winchester Energy (ASX: WEL) is looking to “rapidly” bring White Hat 20#3 in the Mustang prospect into production with a fracking operation planned for the end of this coming week.
Less than a week ago, Winchester announced it had completed a frack within What Hat 39#1L’s Strawn Formation in Texas’ East Permian Basin, with 589 barrels of fluid recovered comprising 49bbl of oil and 540bbl of frack water.
According to Winchester, 1,500bbl of frack water will be recovered and once this has been achieved the well will stabilise. The company will then be able to establish consistent oil flow rates.
Over at White Hat 20#3, which is also targeting the Strawn Formation on the Mustang prospect, wireline logging has indicated net oil pay of 28ft from a 52ft oil bearing sand interval extending from 5,918ft to 5,970ft.
This exceeds the net pay recovered from the nearby operating well White Hat 20#2 which initially produced 200bbl oil per day after fracking was completed, with 41,500bbl of oil recovered from the well to-date.
White Hat 20#3 is now awaiting a pending fracking and completion and Winchester has a 75% working interest in the well.
White Hat 20#3 is the first well out of a three-well exploration drilling program which has been planned over the next three months with the other two remaining wells to target the Spitfire and El Dorado prospects.
The three prospects have a best estimate combined prospective resource of 7.796 million barrels (on a probabilistic basis).
At a high estimate P10 basis, the assets have a combined prospective resource of 17.542MMbbl, with 10.912MMbbl net to Winchester.
Of the three prospects, Spitfire has the largest resource, with a high estimate P10 prospective resource of 9.907MMbbl.
Meanwhile, during the March quarter, 4,894bbl of oil was produced net to Winchester, with the company selling 5,193bbl of oil at an average price of US$47.42/bbl.
The sales generated total oil and gas revenue for the quarter of US$192,198.
To-date, Winchester’s wells in the Permian Basin have produced 328,756bbl of oil and 177 million cubic feet of gas.
Cumulative net production to Winchester before royalties has been 164,353bbl of oil and 89MMcf of gas.
Winchester’s holding in the Permian Basin’s Nolan and Coke counties encompasses 17,266 acres, with the company noting the Strawn Formation in the area as the largest producing stratigraphic interval with more than 65MMbbl of oil recovered from the formation across both counties.