White Hat 20#3 is looking even more promising for Winchester Energy (ASX: WEL) after the company reported it had observed oil and gas shows throughout the Caddo Formation, which is a known oil producer in the Permian Basin.
Winchester is carrying out wireline logging, which has reached a current depth of 6,650 feet.
Oil and gas shows have been observed from 6,565ft to 6,650ft within the Caddo Formation, which is not a target, but comes after the primary target the upper Strawn Sand exhibited good to excellent oil and gas shows.
Additionally, estimated visual porosity in the Strawn Sand was “very encouraging” averaging between 10% and 12%, with some intervals as high as 18%.
Winchester also encountered fair and good oil shows within the Strawn Lime of White Hat 20#3, which is a secondary target in the well extending between 5,770ft and 5,910ft.
Under the current strategy, the fractured Ellenburger Formation will also be drilled in White Hat 20#3.
Once wireline logging has been completed, White Hat 20#3 will be cased and then deepened to the top of the Ellenburger Formation which is estimated at 6,700ft.
Winchester will then drill 150ft into Ellenburger with light potassium chloride water, followed by an open hole test of the formation.
The company said the wireline logs were required to determine the potential net oil pay in the zones where oil and gas shows have been noted to-date.
Permian Basin acreage
Winchester has a 75% working interest in the well which is part of the Mustang prospect in Texas’ Permian Basin. Private Texas-based company Carl E Gungoll Exploration is participating for a 25% working interest in well.
White Hat 20#3 was spudded less than two weeks ago, with the Mustang prospect hosting a prospective recoverable resource target of 2 million barrels at best estimate and up to 5 million barrels on a high estimate basis.
The well is the first of a three-well exploration program across Winchester’s Permian Basin assets, with the two remaining wells to target the El Dorado and Spitfire prospects.
Winchester’s strategy is to define a combined best to high estimate prospective resource of 7.8-17.5 million barrels of recoverable oil from the three prospects.
The Eastern Permian Basin, which surrounds Winchester’s large acreage, has generated 100 million barrels of oil from the Strawn Formation and Ellenburger Limestone.
White Hat 20#3 is about 510m south-west of the company’s White Hat 20#2 well which is producing from the Strawn sand.