Winchester Energy Ltd · ASX:WEL
Winchester Energy — RIU GoodOil Conference 2018
24 slides from Winchester Energy's conference presentation, Sep 12, 2018
Slide 1: Revised Investor Presentation – RIU Good-Oil Conference
REVISED INVESTOR PRESENTATION – RIU GOOD-OIL CONFERENCE Date: 12 September 2018 The Company understands that the ASX removed the original presentation form the company announcements platform. ASX Code: WEL Directors The original presentation has been retracted. The presentation attached John Kopchef
Slide 2: Oil Production & Development
Oil Production & Development ASX code: WEL Permian Basin - Texas - USA “Australian junior taking on the Permian heavyweights” RGN 2017
Slide 3: Disclaimer
Disclaimer This document is for information purposes only. It is not a prospectus, disclosure document Winchester does not make any recommendation to investors regarding the suitability of or offering document under Australian law or under any other law and does not constitute any securities and the
Slide 4: Winchester Energy Investment Summary
Winchester Energy Investment Summary ▷ Single focus on US premier area, Permian Basin, Texas with high working interests in 17,000 of contiguous net acres, 5 large leases with low continuous drilling commitments. ▷ Aiming to grow low risk and low cost oil production from Ellenburger and Strawn above
Slide 5: Permian Basin - Texas USA Net 78 sq. kms (17,000 Acres)
Permian Basin - Texas USA Net 78 sq. kms (17,000 Acres) Winchester with its 17,000 net acres located in Nolan Country, Texas is only ASX listed company with sole focus in the Permian Basin. “The Permian Basin is currently the best oil address in the world outside of the Middle East – second largest
Slide 6: Nolan and Coke Counties have produced 175 million barrels of oil
Nolan and Coke Counties, Eastern Permian Basin, have produced 175 million barrels of oil from conventional Ordovician to Permian Reservoirs
Slide 7: Why be in the Permian Basin? Stacked proven Oil producing Targets!
Why be in the Permian Basin? Stacked proven Oil producing Targets! ➢ 17,000 net acres with multiple stacked targets. ➢ Initial development focus is on Ellenburger and Strawn conventional plays. ➢ Follow on focus on Crystal Falls carbonates/shales & Wolfcamp D shales unconventional oil plays. 6
Slide 8: Capital Structure
Capital Structure Current Trading AUD $0.02c Cash A$1.1M* 7 September 2018 Total shares on issue 285 mill Winchester Share Price Graph Total options on (from June 2015 to present) issue exercisable 50 mill @A$0.12/share DEBT NIL High:0.016 Market 0.12 capitalisation @ A$5.7 mill 2.0 cents/share 0.02
Slide 9: WEL Board and Management
WEL Board and Management WEL Directors John Kopcheff (Non-Exec Chairman) – ex Vicpet/Senex MD & founder- technical experience. Neville Henry (MD) – successful explorer and start up, business & technical experience – Texas. Peter Allchurch (NED) – successful start up -Aurora & technical experience. J
Slide 10: Planned Drilling & Production Testing Activity, Next 6 months
Planned Drilling & Production Testing Activity, Next 6 months THREE PROSPECTS 38 #3 Strawn Frac PLANNED 2018/19 1st qtr. TWO COMPLETIONS DRILLING ACTIVITY RECOMPLETIONS ONE MUSTANG WOLFCAMP SHALE FRAC EL DORADO STRAWN CHANNEL (Note: All planned drilling activity subject to rig availability, funding
Slide 11: Next 6 Months Planned Drilling Schedule
Next 6 Months Planned Drilling Schedule PERMIAN BASIN WINCHESTER 2018 2019 WELL INTEREST % Well September October November December January February March (After farmout- direct) Interest White Hat Ranch - 39#1 Recompletion Strawn 31.5% Thomas Ranch 119H Wolfcamp Shale Frac 12.5%* White Hat Ranch 38
Slide 12: Drilling and Production Economics
Drilling and Production Economics ▷ Drilling Depth: 2300 meters (7,500 feet) through entire section. ▷ Low drilling cost: US$800,000 for vertical wells to be completed and on production. ▷ Economic threshold: 30 bopd at US$50 oil price. ▷ High IPs: Multiple vertical wells have had IPs of greater tha
Slide 13: Winchester Quarterly Oil Production and Cash Flow
Winchester Quarterly Oil Production and Cash Flow Lateral success ? Q2 2018 12 June 2018 12
Slide 14: How to Drive the current WEL Share Price?
How to Drive the current WEL Share Price? ▷ Grow production, cash flow & reserves by successful 39#1 and 38#3 recompletions and exploration success in El Dorado, Strawn Channel & Mustang Prospects. ▷ Winchester has 20 additional drill ready locations with interpreted structural and stratigraphic tra
Slide 15: El Dorado Prospect – Ellenburger & Strawn Closure
El Dorado Prospect – Ellenburger & Strawn Closure 1,000 acres 38 #3 Strawn Frac PLANNED 2018 DRILLING ACTIVITY El Dorado MUSTANG Prospect STRAWN CHANNEL Arledge Field 2 million bbls from (Note: All planned drilling activity subject to rig availability, funding and farmout) Strawn and Cisco SCALE MIL
Slide 16: El Dorado Prospect- Arbitrary 3D Seismic Line
El Dorado Prospect- Arbitrary 3D Seismic Line El Dorado A El Dorado 240 #1 Proposed Location SW 2009 Arledge McLeod NE Strawn Ellenburger Closure at Elbg, Strawn, Penn Carb Slide 15
Slide 17: Strawn Channel Prospect- Interpreted gross area 2,000 acres
Strawn Channel Prospect- Interpreted gross area 2,000 acres Nina Lucia Field 40 million barrels from Odom and Strawn White Hat Ranch Carbonates Field 600,000 barrels 38 #3 Strawn Frac Strawn Channel PLANNED 2018 DRILLING ACTIVITY Prospect MUSTANG Suggs Field 10 million barrels from 100 EL DORADO wel
Slide 18: Strawn Channel Prospect- Interpreted gross area 2,000 acres
Strawn Channel Prospect- Interpreted gross area 2,000 acres Strawn Channel WHR 212#1 PL PL Slide 17
Slide 19: Strawn Channel Prospect – 3D seismic line XL 1110
Strawn Channel Prospect – 3D seismic line XL 1110 using velocity imaging WHR 212 #1 WEST PROPOSED LOCATION EAST MCLEOD AMERAC #1 PROJD. TOP CARBONATE CHANNEL FACIES STRAWN ELLENBURGER Inversion seismic line processing XL 1110 Slide 18
Slide 20: West to East Cross-section across Strawn Channel
West to East Cross-section across Strawn Channel W E PROPOSED LOCATION 213-1 STRAWN CHANNEL 212#1 AF211-1 CF211-1 CF244-1 Objective Section Top of Strawn GOEN Jennings Sand GOEN Gardener Sand Jennings Lime Gardener Sand ODOM ODOM CDDO CDDO Top of ELBG Strawn Channel Prospect Strawn Channel 212 PL Sl
Slide 21: Mustang Prospect- interpreted prospective area of over 1,000 acres
Mustang Prospect- interpreted prospective area of over 1,000 acres 20 #2 Fry and Strawn production 99,000 bbls oil EUR 38 #3 Strawn Frac Mustang PLANNED 2018 DRILLING ACTIVITY Prospect EL DORADO (Note: All planned drilling activity subject to rig availability, funding and farmout) SCALE MILES 0 5 Wi
Slide 22: Mustang Prospect- interpreted prospective area of over 1,000 acres
Mustang Prospect- interpreted prospective area of over 1,000 acres • Gross Pay: 30 ft • Net Pay: 10 - 20 ft Mustang 20#3 • Drill Depth: 5,700 – Propd. Location 6,000 ft MD • D&C Cost: Stand WHR 20 #2 alone $500,000 ER 99,000 bbls IP 200 bopd • F&D: Full cycle cost $20/bbl • 1000 acres WHR 20 #1 EUR
Slide 23: Winchester Energy Investment Summary
Winchester Energy Investment Summary ▷ Single focus on US premier area, Permian Basin, Texas with high working interests in 17,000 of contiguous net acres, 5 large leases with low continuous drilling commitments. ▷ Aiming to grow low risk and low cost oil production from Ellenburger and Strawn above
Slide 24: Permian Basin oil producer & explorer, Texas
Permian Basin oil producer & explorer, Texas 23