Winchester Energy Ltd · ASX:WEL
Winchester Energy — Investor Presentation (June 2018)
18 slides from Winchester Energy's investor presentation, Jun 20, 2018
Slide 1: Investor Presentation
For personal use only Investor Presentation Date: 20 June 2018 Please find attached Investor Presentation. ASX Code: WEL Directors John Kopcheff —ENDS— Non-Executive Chairman Neville Henry Managing Director For further information, please contact: Peter Allchurch Non-Executive Director James Hodges
Slide 2: Oil Production & Development - Permian Basin, Texas
For personal use only Oil Production & Development ASX code: WEL Permian Basin - Texas - USA “Australian junior taking on the Permian heavyweights” RGN 2017
Slide 3: Disclaimer
Disclaimer For personal use only This document is for information purposes only. It is not a prospectus, Prospective investors should make their own independent evaluation disclosure document or offering document under Australian law or of an investment in any securities. The material contained in t
Slide 4: China & India growing oil & LNG consumers
Source: NASA website China & India – growing oil & LNG consumers - driving world oil & gas prices higher! For personal use only 3
Slide 5: Growing natural gas demand in China
GROWING NATURAL GAS DEMAND IN CHINA - A LOOK INTO THE FUTURE? For personal use only 4
Slide 6: Demand for oil in developing countries increasing
Demand for oil in developing countries is increasing – Niger Delta shipping solution to local tanker shortage? For personal use only Anyone got a light? This is hard work!! Photo courtesy of J F Allender 5
Slide 7: Crude Oil Price - last ten years
Crude Oil Price/bbl – last ten years - impact on ASX listed oil shares since Dec. 2014 For personal use only “The Coming Scramble for Middle Distillates – Raising Oil Price Winchester listed Forecast to $90, 6/10/2014 by early 2020” (Morgan Stanley May 15, 2018) US$65.78 18/6/18 2018 Courtesy Macro
Slide 8: Capital Structure
Capital Structure For personal use only Current Trading AUD $0.035c Cash A$2.3M* 18 June 2018 Total shares on issue 285 mill Total options on Winchester Share Price Graph issue (from June 2015 to present) 50 mill exercisable@A$0.12 /share DEBT NIL 0.12 Market capitalisation @ A$10 mill 3.5 cents/sha
Slide 9: WEL has a proven management team
WEL has a proven management team For personal use only 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
Slide 10: Permian Basin - Texas USA
Permian Basin - Texas USA Net 78 sq. kms (17,000 Acres) For personal use only 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
Slide 11: Potential Oil Trap - Ellenburger carbonate formation
40 sq. km (10,000 acres) Potential Oil Trap- Ellenburger carbonate formation For personal use only SCALE 0 MILES 5 Winchester leases & surrounding area covered by 234 sq. kms ( 57,600 acres) of 3D seismic 19 June 2018 10
Slide 12: Why be in the Permian Basin? Stacked proven oil producing targets
Why be in the Permian Basin?-Stacked proven Oil producing Targets! For personal use only A number of distinct potential oil pay zones have been targeted by Winchester on its 17,000 net acres. Development focus is on Ellenberger, Strawn , Crystal Falls conventional & Wolfcamp shales unconventional oi
Slide 13: Overview of production & well economics
Overview of production & well economics For personal use only ▷ For 100 bopd IP vertical well recovering 100,000 BO with WTI US$45/bbl & US$2.75/mcf flat pricing, well and completion costs pay out in 12 months ▷ Very low cost of production of US$8/bbl reduced further as associated condensate rich ga
Slide 14: Oil Production and Cash Flow
Oil Production and Cash Flow For personal use only Lateral success ? 12 June 2018 13
Slide 15: How to Drive the current WEL Share Price?
How to Drive the current WEL Share Price? ▷Build daily oil production by successfully drilling up For personal use only interpreted resource of 10 mill bbls in Ellenburger carbonate formation with active drilling program by farmout ▷Production, cash flow and reserves build up to be accelerated by an
Slide 16: 2018 Planned Drilling Schedule
2018 Planned Drilling Schedule For personal use only PERMIAN BASIN WINCHESTER WELL INTEREST % Well June July August September October November December (After farmout- direct) Interest White Hat Ranch - 39#1 Horizontal - Ellenburger 39#1 70.0% White Hat Ranch - 38#2 Ellenburger Workover 50.0% Arledg
Slide 17: Winchester Energy Investment Summary
Winchester Energy Investment Summary For personal use only ▷ Single focus on US premier area, Permian Basin, Texas with high interests in 17,000 net acres. ▷ Aiming to grow low risk and low cost oil production from Ellenburger and Strawn. Production highly leveraged to oil price rises. ▷ Significant
Slide 18: Permian Basin oil producer, Texas
Permian Basin oil producer, Texas For personal use only 17
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