Winchester Energy Ltd · ASX:WEL
Winchester Energy — Investor Presentation (August 2016)
22 slides from Winchester Energy's investor presentation, Aug 30, 2016
Slide 1: Investor Presentation
For personal use only Investor Presentation Date: 30 August 2016 Following is an Investor Presentation that Neville Henry, the Managing ASX Code: WEL Director of Winchester Energy Limited, is giving to investors in Sydney, Directors Melbourne and Perth during the course of the next 10 days. Peter Al
Slide 2: Oil Producer - Permian Basin - Texas - USA
For personal use only Oil Producer Permian Basin - Texas - USA ASX Code: WEL
Slide 3: Disclaimer
Disclaimer For personal use only This document is for information purposes only. It is not a Prospective investors should make their own independent evaluation prospectus,disclosure document or offering document under of an investment in any securities. The material contained in this Australian law
Slide 4: Capital Structure
Capital Structure For personal use only Cash AUD $5,500,000 Total shares on issue 215,416,672 Total options on issue 30,000,000 Total convertible milestone notes (converting to 60,000,000 shares) 60,000 Market capitalisation @ A$0.07 AUD $15,079,167 Enterprise Value of the Company’s assets AUD $9,57
Slide 5: Location of Oil and Gas Leases, Texas, USA (18,058 Net Acres)
Location of Oil and Gas Leases, Texas, USA (18,058 Net Acres) For personal use only Winchester’s holding of 18,058 net acres is located in Nolan Country, Texas as indicated on the map below: Slide 3
Slide 6: Overview
Overview For personal use only ▷ 5 producing vertical oil wells. Gross oil production of 462 BOPD. ▷ 90 square miles (57,600 acres) of 3D seismic completed and interpreted. ▷ 10,000 acre trap in the Ellenburger Formation identified. ▷ Low cost wells: US$800,000 to drill and complete. ▷ 18,058 net ac
Slide 7: Producing Oil Wells
5 Producing Oil Wells For personal use only The first 5 vertical oil wells drilled into Winchester’s leases and their daily oil flow rates are as follows: Gross Oil Production Net Oil Production Oil Well WEL’s WI % Per Day (bopd) to WEL (bopd) White Hat 20#1 20 bopd 50% 10 bopd White Hat 20#2 2 bopd
Slide 8: Oil Production
Oil Production For personal use only June March June March Quarter Quarter Quarter Quarter Gross Oil Production (bo) 2016 2016 2015 2015 Oil Production (Gross 100%WI)1 26,159 26,761 2,322 267 Note 1 These figures show gross oil production from all wells and is pre-royalty. Winchester is entitled to
Slide 9: 10,000 Acre Oil Trap
10,000 Acre Oil Trap For personal use only KEY 640 ACRES 1 MILE X 1 MILE WINCHESTER ENERGY LEASES 18,058 NET ACRES OIL FIELDS NINA LUCIA OIL FIELD 140 MILLION BARRELS OF OIL PRODUCED COKE COUNTY COUNTY BORDER BRIDGEFORD SUGGS OIL FIELD 10 MILLION WINCHESTER ENERGY OIL WELLS BARRELS OF OIL PRODUCED T
Slide 10: Excellent Well Economics
Excellent Well Economics For personal use only ▷ Low cost wells: US$800,000 to drill and complete. ▷ 18,058 net acres. Three large leases cover the 10,000 acre trap area. ▷ Oil royalties of 23.5% (one lease) and 20% (two leases). ▷ Continuous drilling lease terms. 1 vertical well per year maintains
Slide 11: Well Economics - US $45 BO
Well Economics - US $45 BO For personal use only ▷ Economic Results: ▶ Undisc Cash Flow ($): US$1,825,230 ▶ Disc Cash Flow @10% ($): US$1,227,470 ▶ Return on Investment (Undisc): 3.2: 1 ▶ Internal Rate of Return (IRR)(%): 79% ▶ Initial Production (IP): 100 Bopd ▶ Capital Investment: US$800,000 ▶ Wor
Slide 12: Well Economics - US $55 BO
Well Economics - US $55 BO For personal use only ▷ Economic Results: ▶ Undisc Cash Flow ($): US$2,535,920 ▶ Disc Cash Flow @10% ($): US$1,751,800 ▶ Return on Investment (Undisc): 4.2: 1 ▶ Internal Rate of Return (IRR)(%): 106% ▶ Initial Production (IP): 100 Bopd ▶ Capital Investment: US$800,000 ▶ Wo
Slide 13: Well Economics - US $65 BO
Well Economics - US $65 BO For personal use only ▷ Economic Results: ▶ Undisc Cash Flow ($): US$3,246,000 ▶ Disc Cash Flow @10% ($): US$2,276,130 ▶ Return on Investment (Undisc): 5.1: 1 ▶ Internal Rate of Return (IRR)(%): 134% ▶ Initial Production (IP): 100 Bopd ▶ Capital Investment: US$800,000 ▶ Wo
Slide 14: Modern Proprietary Technology - Short Radius Lateral Wells
Modern Proprietary Technology Short Radius Lateral Wells For personal use only ▷ Improve well economics by drilling short radius lateral wells (modern, cutting edge proprietary technology). ▷ 4 lateral legs of 500 feet. ▷ Optimize your ability to intersect multiple zones with high fracture density,
Slide 15: Potential 2P Reserves
Potential 2P Reserves For personal use only ▷ 1,000 acres of high potential reservoir based on structural modelling, 3D seismic interpretation and well data from the current 5 producing oil wells and old nearby wells. ▷ 25 well locations over 1,000 acres (40 acre spacing) of high potential reservoir
Slide 16: Current Focus and Strategy
Current Focus and Strategy For personal use only ▷ Gross oil production is 462 bopd with mild decline. ▷ Have mapped an oil trap similar in size to the nearby Suggs Oil Field. ▷ We believe our 10,000 acre trap will have similar variable reservoir characteristics to the Suggs Oil Field. ▷ We will use
Slide 17: How to Drive the Share Price?
How to Drive the Share Price? For personal use only ▷ Enterprise value is currently A$9,600,000 (which is only US$400 per net acre across 18,058 net acres). ▷ Drive the share price by proving by successful drilling a gross 2P reserve of 15,000,000 BO across the 10,000 acre trap. ▷ Debt financing for
Slide 18: Stacked Targets
Stacked Targets For personal use only A number of distinct potential oil pay zones have been targeted by Winchester on its 18,058 net acres. Upper Cline (“3 Fingers Shale”) (Unconventional) ▶ Blanket resource play. ▶ Present on all of WEL’s acres. Lower Cline (“Lower Penn Shale”) (Unconventional) ▶
Slide 19: Experienced Board
Experienced Board For personal use only ▷ Board of WEL has a combined 130 years of successful experience in oil and gas discovery, development and production in the USA and many other parts of the world. ▷ Key founders, directors and shareholders of WEL are Neville Henry (Houston based) and Peter Al
Slide 20: Experienced Board
Experienced Board For personal use only WEL has a strong and experienced Board with the skills required to develop WEL’s oil and gas assets in Texas and deliver shareholder value. Geologist and Resource Venture Capitalist with 48 years’ experience in Mineral and Petroleum Exploration, Development an
Slide 21: Performance Securities and Payments
Performance Securities and Payments For personal use only TYPE AMOUNT TERMS AND CONDITIONS Options 30,000,000 Each option has an exercise price of A$0.25 and a term which expires on 30 April 2019. Class A The Class A convertible milestones notes have no value unless the milestone is successfully rea
Slide 22: Contact Details
Contact Details For personal use only Neville Henry John Kenny Managing Director Director Tel: +1 713 333 0610 Mobile: +61 403 347 171 Cell: +1 832 656 9916 Email: jk@winchesterenergyltd.com Email: nh@winchesterenergyltd.com Australia USA Level 3 Two Riverway 18 Richardson Street 17th Floor West Per
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