Winchester Energy Ltd · ASX:WEL
Winchester Energy — Investor Presentation (December 2018)
26 slides from Winchester Energy's investor presentation, Dec 11, 2018
Slide 1: Oil Production & Development
Oil Production & Development ASX code: WEL Permian Basin - Texas - USA “Australian junior taking on the Permian heavyweights” RGN 2017 6 December 2018
Slide 2: Disclaimer
Disclaimer This document is for information purposes only. It is not a prospectus, disclosure The estimated total prospective resources referred to in this presentation were document or offering document under Australian law or under any other law first announced to the ASX on 15 October 2018. and d
Slide 3: 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 restore & grow oil production from conventional exploration drilling in Str
Slide 4: Capital Structure
Capital Structure Current Trading AUD $0.024c Cash A$0.8 mill* 10 December 2018 Total shares on issue 285 mill** Winchester Share Price Graph Total options on 50 mill (from December 2017 to present) issue @A$0.12/share 0.12 DEBT NIL Current Market capitalisation @ A$5.7 mill 2.0 cents/share 0.02 Fou
Slide 5: WEL has an experienced management team
WEL has an experienced management team WEL Directors John Kopcheff (Non-Exec Chairman) – ex Vicpet/Senex MD & founder- technical experience Neville Henry (MD) – successful start up, business & technical experience – Texas Peter Allchurch (NED) – successful start up-Aurora & technical experience Larr
Slide 6: 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 & Coke Counties, 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
Slide 7: Why be in Nolan and Coke Counties?
Why be in Nolan and Coke Counties? - have produced 175 million barrels oil from conventional Ordovician to Permian Reservoirs Gross 175 million barrels oil Coke and Nolan Counties have produced 79 million bbls from slope and basinal sands 6 December 2018 7
Slide 8: Why explore in the Permian Basin? Stacked proven Oil producing horizons.
Why explore in the Permian Basin? Stacked proven Oil producing horizons. 17,000 net acres with multiple stacked targets. Initial Development focus is on Strawn & Ellenberger conventional prospects. Total cumulative prospective resource for Mustang, El Dorado & Spitfire prospects range from bes
Slide 9: Planned Drilling & Production Testing Activity, Next 6 months, Eastern Permian Basin
Planned Drilling & Production Testing Activity, Next 6 months, Eastern Permian Basin THREE Thomas 119 PROSPECTS Frac 38 #3 Strawn Frac TWO PLANNED 2019 39 #1 Strawn Frac DRILLING ACTIVITY COMPLETIONS ONE MUSTANG EL DORADO WOLFCAMP SPITFIRE STRAWN CHANNEL SHALE FRAC (Note: All planned drilling activi
Slide 10: Independent Prospective Resource Estimation - Mire & Associates Inc.
Independent Prospective Resource Estimation* - Mire & Associates Inc. • Mustang - Best estimate: 2.0 mill bbls - High estimate: 5.0 mill bbls CHANCE OF SUCCESS**: 58% (WEL Ranking) • El Dorado - Best estimate: 1.3 mill bbls - High estimate: 2.6 mill bbls CHANCE OF SUCCESS**: 48% (WEL Ranking) • Spit
Slide 11: Oil Production and Cash Flow
Oil Production and Cash Flow Gross & net daily barrels of oil per day production & quarterly cash flow 6 December 2018 Slide 3 11
Slide 12: How to increase the value of Winchester?
How to increase the value of Winchester? ▷ Restore & grow production, cash flow & reserves by successful exploration and development drilling and well re-completions in existing vertical wells with indicated prospective oil resource. ▷ With early 2019 exploration drilling success in conventional Mus
Slide 13: 2019 Planned Drilling Schedule
2019 Planned Drilling Schedule PERMIAN BASIN WINCHESTER 2019 WELL INTEREST % Well January February March April May June July (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#3 Strawn Frac/ Recompletion 7
Slide 14: Mustang Prospect- interpreted prospective area of over 1,000 acres
Mustang Prospect- interpreted prospective area of over 1,000 acres 20 #2 Strawn production IP 200 bopd 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 Winchester leases
Slide 15: White Hat Ranch Mustang Prospect
White Hat Ranch Mustang Prospect • Gross Pay: 30 ft Mustang 20#3 • Net Pay: 10 - 20 ft Propd. location • Drill Depth: 5,700 – 6,000 ft MD WHR 20 #2 ER 99,000 bbls • D&C Cost: Stand alone IP 200 bopd $500,000 • F&D: Full cycle cost WHR 20 #1 EUR $20/bbl Elbg 50,000 bbls • 1000 acres JF #3 150,000 bbl
Slide 16: El Dorado Prospect-Ellenburger & Strawn closure 1,000 acres
El Dorado Prospect-Ellenburger & Strawn closure 1,000 acres • Best estimate prospective resource: (Strawn & Elbg) MUSTANG PLANNED 2018 1.3 million DRILLING ACTIVITY bbls* El Dorado Prospect STRAWN CHANNEL Arledge Field 2 mill bbls from (Note: All planned drilling activity subject to rig availability
Slide 17: 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 17 6 December 2018
Slide 18: Spitfire 'Strawn Channel' Prospect- Interpreted gross area 2,000 acres
Spitfire ‘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 MUSTANG Strawn Channel PLANNED 2018 DRILLING ACTIVITY Prospect Suggs Field 10 million barrels EL DORADO Arledge Field 2 mil
Slide 19: Spitfire 'Strawn Channel' Prospect- interpreted gross area 2,000 acres
Spitfire ‘Strawn Channel’ Prospect-interpreted gross area 2,000 acres Best estimate prospective resource: (Strawn & Elbg) 4.5 million bbls* Strawn Channel WHR 212#1 PL *Cautionary Statement: The total gross best estimate prospective resource quoted above was first announced to the ASX on 15 October
Slide 20: Spitfire Prospect Strawn Channel Prospect - seismic line XL 1110 using velocity imaging
Spitfire Prospect Strawn Channel Prospect - seismic line XL 1110 using velocity imaging WHR 212 #1 WEST PROPOSED LOCATION EAST MCLEOD AMERAC #1 PROJD. TOP CARBONATE CHANNEL FACIES STRAWN ELLENBURGER SCALE Inversion seismic line processing MILES 0 0.5 XL 1110 Slide 20 6 December 2018
Slide 21: Spitfire Prospect- West to East Cross-section across Strawn Channel
Spitfire Prospect- West to East Cross-section across Strawn Channel W E PROPOSED LOCATION 213-1 WHR 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 S
Slide 22: Spitfire Prospect - Strawn Channel Isochron Map – from 3D & Nearby Wells
Spitfire Prospect - Strawn Channel Isochron Map – from 3D &Nearby Wells MCLEOD 1 AMERAC 7548’ LOWER STRAWN PAY ON LOG MCLEOD 1 CROWNCREST 7080’ PRODUCED 11,208 BO FROM ELLENBURGER WHR 212 #1 PL Strawn Channel XLINE 1110 SCALE 0 MILES Slide 0.522 6 December 2018
Slide 23: Spitfire 'Strawn Channel' Prospect & possible western extension
Spitfire ‘Strawn Channel’ Prospect & possible western extension Possible channel White Hat western Strawn extension Channel Prospect Strawn Channel WHR 212#1 PL Proposed Location SCALE MILES 0.5 0 Slide 23 6 December 2018
Slide 24: 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 oil production from exploration drilling in Strawn and Ellenburger for
Slide 25: 2019 Planned Drilling Schedule
2019 Planned Drilling Schedule PERMIAN BASIN WINCHESTER 2019 WELL INTEREST % Well January February March April May June July (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#3 Strawn Frac/ Recompletion 7
Slide 26: Permian Basin oil producer & explorer, Texas
Permian Basin oil producer & explorer, Texas 26
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