Winchester Energy Ltd · ASX:WEL
Winchester Energy — 2019 Gold Coast Investment Showcase
25 slides from Winchester Energy's conference presentation, Jun 25, 2019
Slide 1: Oil Production & Development
Oil Production & Development Permian Basin - Texas - USA ASX:WEL
Slide 2: Disclaimer
Disclaimer This document is for information purposes only. It is not a prospectus, disclosure document or offering document The estimated total prospective resources referred to in this presentation were first announced to the ASX on under Australian law or under any other law and does not constitut
Slide 3: Investment Summary
Winchester Energy ASX:WEL Investment Summary Single focus on US premier onshore oil producing area, Permian Basin, Texas with high working interests in 17,000 of contiguous net acres, 5 large leases with low continuous drilling commitments. Restoring & growing oil production from conventional explor
Slide 4: Capital Structure
Capital Structure Cash on hand Shares trading AUD $0.032 on 21June 2019 31 May 2019 A$1.6 mill Total shares on issue 431 mill Total options on issue @A$0.12/share 39 mill 0.14 DEBT NIL 0.12 Current Market Cap @ 3.2 cents/share A$13.7 mill Board and Management 0.10 (% ownership of the Company) 32% 0.
Slide 5: Quarterly Cash Flow
Oil Production, Cash Flow and share price from IPO listing 6 October 2014 Gross & Net Oil Production bopd & Qtrly Cash Flow Oil price crashes from Non-Successful Ellenburger Start of Ellenburger Successful Mustang US100/bbl to US$50/bbl and Successful horizontal drilling and horizontal drilling prog
Slide 6: How to increase the value of Winchester?
How to increase the value of Winchester? Restore & grow production, cash flow & reserves by successful development and exploration drilling of 17,000 acres of leasehold Commence White Hat 20 #4 development well on Mustang Prospect following on 2019 exploration drilling success at White Hat 20-3 to p
Slide 7: 2019 Planned Drilling schedule
2019 Planned Drilling schedule 25 June 2019 winchesterenergyltd.com 7
Slide 8: Permian Basin - Texas USA - Net 68 sq. kms (17,000 acres)
Permian Basin - Texas USA - Net 68 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 – secon
Slide 9: Why explore in the Permian Basin?
Why explore in the Permian Basin? Stacked proven oil producing horizons 17,000 net acres with multiple stacked conventional drilling targets. Initial focus is on development of Mustang Strawn Sand stratigraphic prospects. Total cumulative gross prospective resource for Mustang, Lightning, Spitfire &
Slide 10: Development Targets & Exploration Prospects
Development Targets & Exploration Prospects Development Targets Mustang Central Mustang South Mustang North Exploration Prospects Lightning Spitfire El Dorado 25 June 2019 winchesterenergyltd.com 10
Slide 11: Independent Prospective Resource Estimation
Independent Prospective Resource Estimation* Mire & Associates Inc. Mustang Lightning Spitfire Cisco stacked sands Strawn Sand & Ellenburger Strawn Sand- Fry Member Gross Prospective Recoverable Limestone Gross Prospective Recoverable Resource Gross Prospective Recoverable Resource Resource Best est
Slide 12: Strawn Sand Drilling
Strawn Sand Drilling Production Economics Shallow drilling depth: 1,900 meters (6,200 feet). Low drilling cost: US$800,000 for vertical wells fracked and completed on production. Very low cost of production of US$10/bbl, profitable at current low oil prices. Development Drilling: A planned consisten
Slide 13: Mustang Prospect
Mustang Prospect Drilling and discovery history Five wells drilled into low perm Strawn oil sand in 1965. All five wells non-commercial with rapid decline with conventional production method. Winchester in 2017 with ‘fresh technical eyes’, exclusive 3D seismic & large well data base identified large
Slide 14: Mustang Prospect Active 2019 development drilling program
Mustang Prospect Active 2019 development drilling program Following completion of White Hat 20-3 for production at Initial Production rate of 306 bopd, Mustang Prospect confirmed as target for further appraisal drilling. Current interpretation of data indicates within the Strawn Fry Sand member a Gr
Slide 15: Mustang Prospect
Mustang Prospect SW - NE Seismic 3D seismic section through planned 20-4 development well location, Mustang Central, A JF-5 JF-3 Mustang 20-3 20-2 38-3 38-3 B SW NE SP Res SP GR Res GR Res 20-4 PL Res Strawn “Fry "sand thickness & 3D seismic amplitude map – Mustang Central NE Thick Fry Sand 20-5 Top
Slide 16: Exploration Prospect - Lightning
Exploration Prospect - Lightning Target is a Cisco laminated sand and shale section with gross 150 feet of untested potential oil pay interpreted from wireline logs in 1982 well Arledge 16#1. Down dip oil production supports the possible presence of oil in the Lightning Prospect target zone. Best es
Slide 17: Exploration Prospect - Lightning
Exploration Prospect - Lightning Planned TD: 5,500’ in Cisco section Arledge 16 #1 Gamma Ray and Density Log. Objective: Re-test prospective Cisco interval with No Mud Logs potential laminated pay overlooked in Arledge 16#1 original well. W Arledge #1 (16#1 Re-Entry) Pat 1 E Gross 150 feet of thin b
Slide 18: Exploration Prospect - Spitfire
Exploration Prospect - Spitfire Target is a 3D seismically defined major Strawn ‘channel’ feature interpreted to be filled with Upper Strawn Sand Support for the presence of Strawn sand fill in the ‘channel’ is provided by a well drilled to the west of the channel edge that intersected sand with oil
Slide 19: Spitfire Prospect Strawn Channel Prospect - seismic line XL 1110
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 25 June 2019 winchesterenergyltd.com 19
Slide 20: Spitfire 'Strawn Channel' Prospect
Spitfire ‘Strawn Channel’ Prospect Possible West Spitfire extension “C” Wolfcamp “D” Spitfire Prospect West Spitfire Prospect Strawn Strawn Channel WHR 212#1 PL SCALE MILES 0.5 0 25 June 2019 winchesterenergyltd.com 20
Slide 21: Exploration Prospect - El Dorado
Exploration Prospect - El Dorado El Dorado Prospect is a 3D seismically defined four way dip structural closure at the Strawn and Ellenburger Limestone horizons. Secondary targets are in the Cisco down to the Strawn Formation. Good porous Ellenburger limestone with oil shows was drilled off the west
Slide 22: El Dorado Prospect Arbitrary 3D Seismic Line
El Dorado Prospect Arbitrary 3D Seismic Line El Dorado A El Dorado 240 #1 Proposed Location 2009 Arledge McLeod Strawn Ellenburger Closure at Elbg, Strawn, Penn Carb 25 June 2019 winchesterenergyltd.com 22
Slide 23: Adjacent Strawn Activity Current
Adjacent Strawn Activity Current Hermleigh Oil Field Strawn horizontal & multi stage fracks with IP’s of up to 1,461 bopd Verado Energy carrying out successful laterals & multi stage fracks in Strawn Formation in adjacent Scurry County 15 miles northwest of WEL acreage. Average Initial Production ra
Slide 24: Wolfcamp "D" Shale / Eastern Shelf Area
Wolfcamp “D” Shale / Eastern Shelf Area Thomas 119 vertical frack carried out by USEC 1Q 2019 Significant vertical frack oil and gas rates from the Wolfcamp D Three Fingers Shale reported from Thomas 119-1 by USEC. Thomas 119-1 first vertical frack test of Wolfcamp D shale in Winchester’s leasehold
Slide 25: ASX:WEL
Australian Office Tel +61 1300 133 921 Fax +618 6298 6191 ABN 21 168 586 445 USA Office Tel +1 713 333 0610 ASX:WEL
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