Winchester Energy Ltd · ASX:WEL
Winchester Energy — Noosa Mining & Exploration Investor Conference 2019
27 slides from Winchester Energy's conference presentation, Jul 17, 2019
Slide 1: Oil Production & Development, Permian Basin - Texas - USA
For personal use only Oil Production & Development Permian Basin - Texas - USA Noosa Mining & Exploration Investor Conference 17 July 2019 ASX:WEL
Slide 2: Disclaimer
For personal use only 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
Slide 3: Investment Summary
Winchester Energy ASX:WEL Investment Summary For personal use only 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 fr
Slide 4: Permian Basin - Texas USA - Net 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 For personal use only t
Slide 5: Why explore in the Permian Basin?
Why explore in the Permian Basin? Stacked proven oil producing horizons For personal use only 17,000 net acres with multiple stacked conventional drilling targets in US premier onshore oil area. Initial focus is on development of Mustang Strawn Sand stratigraphic prospects. Total cumulative gross pr
Slide 6: Oil Production & Sales Revenue Status June Quarter 2019
Winchester Energy ASX:WEL Oil Production & Sales Revenue Status June Quarter 2019 For personal use only Gross Oil production averaged 208 bopd June qtr. Winchester WI production averaged 133 bopd June qtr - increase of 247% over March 2019 quarter.* Restoring & growing oil production from convention
Slide 7: Capital Structure
Capital Structure Cash on hand Shares trading $0.03 on 12 July 2019 31 May 2019 A$1.6 mill Total shares on issue 431 mill For personal use only Total options on issue @A$0.12/share 39 mill 14 DEBT NIL 12 Current Market Cap @ 3.2 cents/share A$12.9 mill Board and Management 10 Share Price (Cents) (%
Slide 8: Oil Production, Cash Flow and share price
Oil Production, Cash Flow and share price from IPO listing 6 October 2014 For personal use only Gross & Net Oil Production bopd & Qtrly Cash Flow Oil price crashes from Non-Successful Ellenburger Successful Start of Ellenburger Successful Mustang US100/bbl to US$50/bbl and horizontal drilling and ta
Slide 9: How to increase Winchester shareholder value?
How to increase Winchester shareholder value? Restore & grow production, cash flow & reserves by successful development and exploration drilling of 17,000 acres of leasehold For personal use only • Focus on shallow conventional oil targets with vertical drilling, very low production costs and high w
Slide 10: How to increase Winchester shareholder value? - the details
How to increase Winchester shareholder value? - the details For personal use only Commence White Hat 20 #4 / 20#5 development wells on Mustang Prospect following on 2019 exploration drilling success at White Hat 20-3 to prove up high estimate gross prospective resource of 3.8 million boe* Drilling o
Slide 11: 2019 Planned Drilling schedule
2019 Planned Drilling schedule For personal use only 21 June 2019 winchesterenergyltd.com 11
Slide 12: Mustang Development Program & Exploration Prospects
Mustang Development Program & Exploration Prospects For personal use only Mustang Development Targets P50: 2.03 mmboe* P10: 3.78 mmboe* Mustang Central Mustang South Mustang North Exploration Prospects Lightning : P50: 1.95 mmbo* Spitfire : P50: 4.99 mmbo* El Dorado : P50: 1.27 mmbo* *Cautionary Sta
Slide 13: Independent Prospective Resource Estimation
Independent Prospective Resource Estimation* Mire & Associates Inc. For personal use only Mustang Lightning Spitfire Cisco stacked sands Strawn Sand & Ellenburger Strawn Sand- Fry Member Gross Prospective Recoverable Limestone Gross Prospective Recoverable Resource Gross Prospective Recoverable Reso
Slide 14: Strawn Sand Drilling Production Economics
Strawn Sand Drilling Production Economics For personal use only 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 Drillin
Slide 15: Mustang Prospect: Drilling and discovery history
Mustang Prospect Drilling and discovery history Five wells drilled into low perm Strawn oil sand in 1965. For personal use only All five wells drilled in 1965 non-commercial with rapid decline with conventional drill stem tests. Winchester in 2017 with ‘fresh technical eyes’, exclusive 3D seismic &
Slide 16: Mustang Prospect: Active 2019 development drilling program
Mustang Prospect Active 2019 development drilling program For personal use only Following completion of White Hat 20-3 for production at initial production rate of 306 bopd, Mustang Prospect confirmed as target for further development drilling. Current interpretation of data indicates within the Str
Slide 17: Mustang Prospect – White Hat 20-4
Mustang Prospect – White Hat 20-4 SW – NE Seismic 3D seismic section through planned White Hat 20-4 development well location, Central Lobe, For personal use only A JF-5 JF-3 Mustang 20-3 20-2 38-3 B SW NE SP Res SP GR Res GR Res 20-4 PL Res Interpreted Strawn “Fry "sand thickness & 3D seismic ampli
Slide 18: Mustang Prospect – White Hat 20-5
Mustang Prospect – White Hat 20-5 NW - SE 3D seismic section through planned White Hat 20-5 development well location, Central Lobe. For personal use only JF-6 C 39-1 20-5 PL 20-3 post frack 306 bopd D GR Res SP Res NW SE Strawn “Fry "sand Interpreted Strawnthickness & “Fry "sand 3D seismic amplitud
Slide 19: Exploration Prospect - Lightning
Exploration Prospect - Lightning For personal use only Target is an Upper and Lower Cisco sand section with untested laminated potential oil pay in Arledge 16#1 from wireline logs and oil shows. Down dip oil production supports the possible presence of oil in the Lower Cisco target zone. Gross prosp
Slide 20: Exploration Prospect - Spitfire 'Strawn Channel'
Exploration Prospect - Spitfire ‘Strawn Channel’ For personal use only 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 chan
Slide 21: Spitfire Prospect Strawn Channel Prospect seismic line
Spitfire Prospect Strawn Channel Prospect seismic line XL1110 using velocity imaging WHR 212 #1 For personal use only 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 14 July 2019 wincheste
Slide 22: Spitfire 'Strawn Channel' Prospect
Spitfire ‘Strawn Channel’ Prospect Possible West Spitfire extension For personal use only “C” Wolfcamp “D” Spitfire Prospect West Spitfire Prospect Strawn Strawn Channel WHR 212#1 PL SCALE MILES 0.5 0 winchesterenergyltd.com 22
Slide 23: Exploration Prospect - El Dorado
Exploration Prospect - El Dorado For personal use only 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 wa
Slide 24: El Dorado Prospect
El Dorado Prospect Arbitrary 3D Seismic Line El Dorado A For personal use only El Dorado 240 #1 Proposed Location 2009 Arledge McLeod Strawn Ellenburger Closure at Elbg, Strawn, Penn Carb winchesterenergyltd.com 24
Slide 25: 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 For personal use only Verado Energy carrying out successful laterals & multi stage fracks in Strawn Formation in adjacent Scurry County 15 miles northwest of WEL acreage. Average
Slide 26: 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 reported by USEC For personal use only for the Wolfcamp ‘D’ Three Fingers Shale. First test in Winchester’s leasehold with Winchester having a 12.5% WI back in a
Slide 27: For personal use only
For personal use only Australian Office: Level 3, 18 Richardson Street West Perth WA 6005 Australia Tel +61 1300 133 921 Fax +61 8 6298 6191 ABN 21 168 586 445 USA Office Tel +1 713 333 0610 ASX:WEL
Winchester Energy — Noosa Mining & Exploration Investor Conference 2019 on 6ix