Winchester Energy’s (ASX: WEL) exploration success has continued into the new year, with its latest McLeod 17#3 well encountering 124 feet of potential pay and “excellent” oil and gas shows.
Situated in Winchester’s Lightning oil field, the McLeod 17#3 well has reached a total depth of 5,692ft with initial wireline logs indicating 414ft of gross Upper and Lower Cisco Sand.
Of that, 124ft of Lower Cisco Sand net pay has been identified with excellent oil and gas shows.
According to Winchester, the 124ft of sand pay exceeds the 25ft of net pay discovered at the Arledge 16#2 well.
In addition to wireline logs, a formation microlmager (FMI) log has been run in McLeod 17#3. It is expected this will uncover further potential new pay from laminated sands that may be present in the Cisco and underlying Canyon sections.
The company anticipates the total interpreted net pay within the Lower Cisco Sand will increase once FMI data has been received.
In the Upper Cisco Sand, which is 157ft thick, Winchester estimates 38ft of net potential pay sand.
Winchester managing director Neville Henry pointed out McLeod 17#3 is the company’s second test at the Lightning prospect.
“It appears to be as good as, if not better than, the discovery well Arledge 16#2.”
“The company continues to test the Arledge 16#2 well and expects further oil contribution from the Upper Cisco Sands,” Mr Henry added.
Winchester has a 100% working interest in the asset, which is located within the company’s 17,266 acres of leases in Texas’ East Permian Basin.
Arledge 16#2 well
Over at the Arledge 16#2 well, Winchester also has a 100% working interest.
Perforation of interval is underway at the asset. Following a short test period, Winchester expects to comingle oil production at the well with existing producing intervals 1-3.
Once this has been finished, Winchester will proceed with completion operations in the overlying Upper Cisco Sand, which comprises an interval from 4,735ft to 4,900ft and has had good oil and gas shows.
Winchester now estimates to gross total pay interval from both formations in the well is 506ft.
Mustang oil field
In addition to the Lightning acreage, Winchester continues to advance wells within its Mustang oil field.
The upcoming White Hat 20#6 well is due to begin mid-month, with partner in the field Carl E Gungoll Exploration LLC exercising its right to participate with a 25% working interest in the asset.
Winchester will retain a 75% working interest in the well.
“The company is confident that through additional completion works, production at White Hat 20#4 can be increased and optimised,” Mr Henry noted.
“In the meantime, development of the Mustang oil field continues with the completion of White Hat 39#2 and drilling at the next infill well, White Hat 20#6, planned to commence in a couple of weeks,” he added.
By mid-morning trade, Winchester’s share price had risen 5.45% to $0.058.