Oil explorer Winchester Energy (ASX: WEL) is preparing to spud the first well of its planned exploration program within its Mustang prospect in Texas’ Permian Basin.
The company has a 75% working interest in the new White Hat 20#3 well, which will target Mustang’s Strawn formation with spudding to start on 11 March 2019.
Mustang has a prospective resource target best estimate P50 of 2 million barrels recoverable and a high estimate P10 of 5MMbbl recoverable.
Winchester estimates it has a 58% chance of discovering oil in the well, given its location in relation to the producing White Hat 20#2 well and existing production at the Ellenburger prospect.
According to the company, White Hat 20#3 is a step out on a large stratigraphic sand play in the Strawn formation and will also test fractured Ellenburger and Strawn units.
White Hat 20#3 is also the first well from the exploration program designed to test the Mustang, Spitfire and El Dorado prospects.
The nearby fracture stimulated White Hat 20#2 well when place on production initially generated 200bbl of oil per day from the Strawn sand and is about 510m from the planned White Hat 20#3 well.
Around 112,000bbl of oil is expected to be ultimately recovered from White Hat 20#2.
Winchester is currently seeking a fracturing crew and anticipates carrying out the frack at White Hat 39#1 next month
White Hat 39#1
Meanwhile, at the White Hat 39#1 well, Winchester has a 40.6% working interest after pay out.
Previous work at White Hat 39#1 included simple perforation and acidisation and this produced 1,000bbl of oil over 10 days from the Strawn formation.
Initially, the well generated 200bopd, but this shrunk to between 40bopd and 50bopd.
In November, Winchester completed a full formation build-up test at the well to assess reservoir pressure, determine potential wellbore damage, areal extent and formation barriers.
After a month’s downtime, White Hat 39#1 was reopened and generated 30bopd before dropping to 11bopd.
A data review indicates a hydraulic fracture program could boost production at White Hat 39#1, with further work underway evaluating this potential avenue.
If it is able to secure a fracturing crew, Winchester anticipates carrying out the frack at White Hat 39#1 next month.
Private company Carl E Gungoll Exploration has farmed-in to the well for a 50% working interest.