After a month shut-in, Winchester Energy (ASX: WEL) has reopened its White Hat 39#1L well in the US Permian Basin and initially produced 30 barrels of oil per day before gradually dipping to 11bopd.
The well was reopened after the completion of a full formation build-up test, which assessed the reservoir pressure, as well as potential wellbore damage, formation barriers and area extent.
During the test, data collected revealed a hydraulic fracture program could assist in boosting the well’s oil production rates.
As a result, Winchester is now reviewing the pressure build-up data and investigating fracture stimulation options and models.
Depending on the hydraulic fracturing crew’s availability, Winchester hopes to begin fracture stimulation in January next year.
White Hat 39#1L is about 1.5 miles west of Winchester’s producing White Hat Ranch and Ellenburger wells.
Carl E Gungoil Exploration has farmed in to White Hat 39#1L. Winchester has a 31.5% interest before payout and will retain a 40.6% working interest after payout.
Meanwhile, well operator US Energy Corporation of America has informed Winchester it has abandoned plans to pump test the Odom Lime Formation at the Thomas 119-1H well. This has been decided due to sub-optimal down-hole conditions.
The US Energy Corporation of America will now move up the vertical well bore and plans to hydraulic facture the Lower Penn Shale of the Wolfcamp D Formation.
A frack crew is expected to be available to begin operations next month.
If oil and gas is recovered from Thomas, Winchester has the right to a 12.5% working interest back-in after US Energy Corporation of America recovers well costs.
Compelling drill targets
Earlier this month, Winchester noted it was gearing up to test three “compelling drill targets” El Dorado, Mustang and Spitfire with drilling of these three targets, planned to start in January 2019.
The targets were discovered in October after 3D seismic and well control work identified them across Winchester’s 17,000 acreage in Texas’ Permian Basin.
Winchester estimated net prospective resources for the targets of between 2.122 million barrels and 10.912 million barrels.
Of particular interest will be the drilling results for the Strawn Formation in the Mustang and Spitfire targets as success may open up a new horizontal drilling and multistage frack play in Winchesters large leasehold.
Industry has been successfully producing to the south west and north of Winchesters leases, Strawn oil production with average production rates of up to 500 bopd from horizontal and multi stage fracked wells.
A “watch this space” according to the company for future Winchester Strawn formation drilling and development activities.