Winchester Energy Ltd · ASX:WEL
Winchester Energy — Investor Presentation (October 2017)
24 slides from Winchester Energy's investor presentation, Oct 23, 2017
Slide 1: 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 2: 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 3: Investment Summary
Investment Summary For personal use only ▷ Single focus on Permian Basin, Texas, most profitable basin in USA with large acreage position with high working interest & low royalties. ▷ Growing low risk and low cost oil production very profitable at current oil prices. Highly leveraged to oil price ri
Slide 4: Strachan Corporate Analysis
Strachan Corporate Analysis For personal use only “Winchester is on the brink of testing a potentially game-changing well completion technology to enhance oil production from its Nolan County permits. Success would enable it to boot-strap funding for expansion of oil production, adding value to its
Slide 5: Capital Structure
Capital Structure For personal use only Cash A$2.3M* Total shares on Winchester Share Price Graph (from listing to present) 250 mill issue High 0.20 Total options on 44 mill 0.15 issue 0.10 DEBT Nil 0.09 Market A$23 Low 0.04 0.05 capitalisation @ Oct 14 Jul 15 Jul 16 Jul 17 mill A$0.09/share Graph b
Slide 6: 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-technical experience Neville Henry (MD) – successful start up, business & technical experience – Texas James Hodges (NED) –US onshore drilling experience – Texas Peter Allchurc
Slide 7: Permian Basin - Texas USA
Permian Basin - Texas USA Net 78 sq. kms (19,000 Acres) For personal use only Winchester’s 19,000 net acres are located in Nolan Country, Texas in the Permian Basin which is currently the best oil address in the world outside of the Middle East – second largest oil field after Ghawar. Forbes 2017 PE
Slide 8: How was Winchester able to build a large acreage position in the Permian Basin?
How was Winchester able to build a large acreage position in the Permian Basin? For personal use only WEL listed in 3Q 2014 and has acquired acreage during current “down” years A$18 mill IPO - Winchester Energy 8
Slide 9: 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 19,210 net acres. Current development focus is on Ellenberger, Strawn and Crystal Falls conventional oil horizons • Crystal Fa
Slide 10: 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 10
Slide 11: Potential Ellenburger Oil Resources
Potential Ellenburger Oil Resources For personal use only ▷ Interpreted 40 sq. kms (10,000 acres) oil trap in the Ellenburger Formation only, based on 3D seismic, well data from current 8 producing vertical oil wells & old nearby vertical wells. (Adjacent Suggs Field–10 million bbls oil produced) ▷
Slide 12: Short-Radius Lateral horizontal well drilling strategy
Short-Radius Lateral horizontal well drilling strategy-trialling at White Hat 38#3ML For personal use only ▷ Improve well production & economics by up to four times+ by drilling up to four short radius horizontal laterals. (modern, cutting edge proprietary technology). ▷ Drill up to four horizontal
Slide 13: Short-Radius Lateral well plans for White Hat 38#3ML
Short-Radius Lateral (short horizontal) well plans for White Hat 38#3ML-Leg 1 (drilled successfully) & Leg 2 (currently underway) - Zone 1 For personal use only 13
Slide 14: Overview of production & well economics
Overview of production & well economics For personal use only ▷ 8 producing vertical oil wells from White Hat Ranch. Gross oil production 301 bopd 49 deg API with associated gas. Net 150 bopd and 60 mcfd ▷ Multi-lateral wells twice cost vertical well, expose up to 20 times potential reservoir length
Slide 15: Oil Production and Cash Flow
Oil Production and Cash Flow For personal use only Gross & Net Average Barrels of oil per day (BOPD) 500 800000 Lateral success 450 ? 700000 400 600000 350 Quarterly Cash Flow US$ 500000 300 Average BOPD 250 400000 200 300000 150 200000 100 100000 50 0 0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 20
Slide 16: Exploration upside - Undrilled Stratigraphic trap potential
Exploration upside- Undrilled Stratigraphic trap potential 3D Seismic pre and post inversion showing For personal use only undrilled Isochron thick Strawn feature Original 3D seismic line A B For the interpreted mapped feature: Top Penn Carbonate Area: 8 sq. kms Ave Thickness: 10 m Depth: 1800 m Str
Slide 17: How to Drive the current Share Price?
How to Drive the current Share Price? For personal use only ▷ Build daily oil production by successfully drilling up interpreted resource of 15 mill bbls in Ellenburger carbonate formation with active lateral horizontal drilling program. ▷ Successfully drilling and bringing on production low risk &
Slide 18: Investment Summary
Investment Summary For personal use only ▷ Single focus on Permian Basin, Texas, most profitable basin in USA with large acreage position with high working interest & low royalties. ▷ Growing low risk and low cost oil production very profitable at current oil prices. Highly leveraged to oil price ri
Slide 19: Strachan Corporate Report
Strachan Corporate Report For personal use only
Slide 20: Strachan Corporate Report
Strachan Corporate Report For personal use only
Slide 21: Strachan Corporate Report
Strachan Corporate Report For personal use only
Slide 22: Strachan Corporate Report
Strachan Corporate Report For personal use only
Slide 23: Strachan Corporate Report
Strachan Corporate Report For personal use only
Slide 24: Permian Basin oil producer, Texas
Permian Basin oil producer, Texas For personal use only
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