Winchester Energy Ltd · ASX:WEL
Winchester Energy — 2020 Resurgence Conference
23 slides from Winchester Energy's conference presentation, Sep 14, 2020
Slide 1: Company Presentation
Company Presentation For personal use only Date: 14 September 2020 Please find attached the Winchester Energy Ltd presentation for the 2020 ASX Code: WEL Resurgence Conference. Directors Laurence Roe Non-Executive Chairman Neville Henry Managing Director Larry Liu Non-Executive Director Tony Peng Au
Slide 2: 2020 Resurgence Conference
For personal use only 2020 Resurgence Conference 15‐16 September 2020 Perth, Western Australia
Slide 3: Disclaimer
Disclaimer For personal use only This document is for information purposes only. It is not a prospectus, disclosure document The estimated petroleum reserves and resources referred to in this presentation or offering document under Australian law or under any other law and does not constitute were f
Slide 4: Winchester Energy Limited Corporate
Winchester Energy Limited For personal use only Corporate Pumpjack in Winchester’s Mustang Oil Field, Nolan County, Texas • Established US oil and gas explorer and producer • Operations office in Houston, Texas; corporate office in Perth • Ongoing revenue from conventional oil and gas production:
Slide 5: Company Snapshot
Company Snapshot For personal use only Corporate Key Metrics Operating Metrics ASX Code • WEL Net WI Daily Production2 • 227 bopd Shares on issue • 688 m Lifting Costs • US$2.46 / barrel Unlisted options on issue • 45 m Leasehold ‐ Gross • 24,019 acres Share price • A$0.027 (7 Sep 2020) Leasehold –
Slide 6: Go where the oil is: Eastern Permian Basin, Texas
Go where the oil is For personal use only Eastern Permian Basin, Texas “The Permian Basin Is Now The World's Top Oil Producer”1 Winchester Area Of Operations – Nolan and Coke Counties Permian Basin Stacked, proven, prolific oil producing horizons Technical Remaining Recoverable 20 billion bo & 16 TC
Slide 7: Go where the oil is: Eastern Permian Basin, Texas
Go where the oil is For personal use only Eastern Permian Basin, Texas Eastern Shelf Stratigraphy (in part) • Winchester offers best ASX leverage into the Permian Indicative Log • Large lease position in the Eastern Shelf (Nolan & Coke Counties) • High Working Interests Cisco Sand • Leases covered b
Slide 8: Winchester Operations
Winchester Operations For personal use only Area of Operations – Nolan Co. SW Nolan County – Oil and Gas fields with Winchester leases and oil fields Nolan and Coke Counties have produced 175 million barrels Lk Trammel S from conventional reservoirs WEL 3D Seismic MFM Nena REH Maryneal Lucia • Over
Slide 9: Winchester Operations
Winchester Operations For personal use only Area of Operations – Nolan Co. Winchester Energy leases and oil fields, prospects and leads • Mustang Field Winchester • Bast Field Production • Lightning Winchester • Greater Lightning (Cisco) Resources • Mustang North Fry Sand Prospects • Hurricane • Spi
Slide 10: Gross Reserves and Resources
Gross Reserves and Resources For personal use only Effective 31 December 2019 Mustang/Ellenburger Lightning Spitfire El Dorado Strawn Fm (Fry Sand) & Cisco stacked sands Strawn Sand & Cisco Sand, Odom & Ellenburger Limestone Ellenburger Limestone Ellenburger Limestones Gross Recoverable Gross Contin
Slide 11: Forward Program
Forward Program For personal use only Wide range of opportunities Field Optimisation – more oil for less cost Underway and Ongoing Lifting costs reduced to less than half of our peers at $2.41/barrel1 23% reduction in Drilling and Completion Costs to approx US$700k1 Development costs equivalen
Slide 12: Recompletion - Three Fingers Shale / Bonus Sand
Recompletion - Three Fingers Shale / Bonus Sand For personal use only Recompletion – Potential by‐passed pay Depth Structure Map – Three Fingers Shale Good follow‐up potential Mustang Central Lobe High‐priority recompletion Three Fingers Shale sand laminations (Bonus Sands), WHR 3801 15% Sandsto
Slide 13: Oil Field - Mustang
Oil Field - Mustang For personal use only Strawn Formation Mustang Oil Field Mustang Oil Field – Type Log WHR 2003. Field discovered by Winchester in 2018 Reserves: 1.25 mmBO (gross 2P) 2.43 mmBO (gross 3P) Mustang North WEL WI: 50 —100% WI / Operator. 5 wells are currently on production i
Slide 14: Oil Field - Mustang
Oil Field - Mustang For personal use only Strawn Formation Mustang Oil Field Mustang Central Area – Fry Sand Amplitudes Field discovered by Winchester in 2018 Reserves: 1.25 mmBO (gross 2P) Mustang Proved 2.43 mmBO (gross 3P) Production Mustang North Mustang North WEL WI: 50 —100% WI / Opera
Slide 15: Oil Field - Lightning Resource & Bast Field
Oil Field - Lightning Resource & Bast Field For personal use only Cisco Sands Lightning ‐ Local Cisco Sand distribution Discovered by Winchester in 2019 Contingent Resource: 9.5 mmBO (Best Estimate) 26.1 mmBo (gross High estimate) WEL WI: 100% WI / Operator. Multiple Cisco sands reservoirs
Slide 16: Cambrian Prospectivity - Regional
Cambrian Prospectivity - Regional For personal use only Cambrian Fields and Faults Cambrian Fields – Fort Chadbourne Fault Trend Cambrian – Eastern Permian Basin • The Cambrian section has produced in excess of 23 MMBO on the Fort Chadbourne fault trend – excluding the mixed production at the White
Slide 17: Cambrian Prospectivity - Local
Cambrian Prospectivity - Local For personal use only Play Overview Cambrian Prospects and Leads Cambrian Play • Primary Target – Structural Closures at Cambrian Sandstone level. • This thick, porous widespread reservoir has produced from nearby fields. Structures 10 miles to the east have produced 1
Slide 18: Cambrian Prospect - Bast Deep
Cambrian Prospect – Bast Deep For personal use only Prospect Overview TWT Structure Map – Top Cambrian Fm Bast Deep • Primary Target: Cambrian Sandstone at 7,300 ft. • Bast Deep is a 4 way dip structural closure mapped on high quality 3D seismic. • None of the local wells penetrate the Cambrian (7,3
Slide 19: Oil is not dead
Oil is not dead For personal use only “The reports of my death have been greatly exaggerated.”1 Oil Prices Recovering • COVID‐19 oil demand destruction forecasts appear “greatly exaggerated” • Oil demand recovery faster than anticipated – production down, stockpiles reducing and prices rising • Shal
Slide 20: Summary
Summary For personal use only Winchester Energy Pumpjack, Workover Rig, Oil being loaded at Arledge 1602 Multiple Prospects • Winchester has five new prospects defined planned for 2021 by both drilling and 3D seismic ready to drill Drilling in 2021 with considerable upside and large Working Interest
Slide 21: Summary: Why invest in Winchester?
Summary For personal use only Why invest in Winchester? Winchester Energy Pumpjack, Workover Rig, Oil being loaded at Arledge 1602 Winchester offers best ASX leverage into the Permian Basin. Established, efficient US‐based Operator with Reserves, production and cashflow1,2. Low‐risk re‐entries
Slide 22: Winchester – ASX leverage into the Permian
Winchester – ASX leverage into the Permian For personal use only Eastern Permian Basin, Texas “The Permian Basin Is Now The World's Top Oil Producer”1 Winchester Area Of Operations – Nolan and Coke Counties Permian Basin Stacked, proven, prolific oil producing horizons Technical Remaining Recoverabl
Slide 23: For personal use only
For personal use only ASX: WEL ABN 21 168 586 445 USA TWO RIVERWAY, SUITE 1700 HOUSTON TX 77056 +1 713 333 0610 AUSTRALIA 18 RICHARDSON STREET, LEVEL 3 WEST PERTH WA 6005 +61 1300 133 921 WWW.WINCHESTERENERGYLTD.COM