Winchester Energy Ltd · ASX:WEL
Winchester Energy — Investor Presentation (February 2017)
24 slides from Winchester Energy's investor presentation, Feb 16, 2017
Slide 1: Shareholder Presentation
For personal use only Shareholder Presentation Date: 15 February 2017 ASX Code: WEL Following is a Shareholder Presentation that Neville Henry, the Managing Director of Winchester Energy Limited, is giving to shareholders in Perth, Directors Peter Allchurch Sydney and Melbourne during the course of
Slide 2: Oil Producer, Permian Basin - Texas - USA
For personal use only Oil Producer Permian Basin - Texas - USA ASX Code: WEL
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: Capital Structure
Capital Structure For personal use only Cash A$3.1M Total shares on issue 215,416,672 Total options on issue 30,000,000 Total convertible milestone notes (converting to 60,000,000 shares) 60,000 Market capitalisation @ A$0.09 A$19.3M Enterprise Value of the Company’s assets A$16.2 Founders, Board an
Slide 5: Location of Oil and Gas Leases, Texas, USA (19,110 Net Acres)
Location of Oil and Gas Leases, Texas, USA (19,110 Net Acres) For personal use only Winchester’s holding of 19,110 net acres is located in Nolan Country, Texas as indicated on the map below: Slide 3
Slide 6: Overview
Overview For personal use only ▷ 6 producing vertical oil wells. Gross oil production of 410 BOPD. ▷ Revenue earned by Winchester in the last quarter was US$708,900 at an average sale price of US$49 per BO. ▷ 106% pre-tax IRR for 100 BO IP recovering 100,000 BO with US$55 BO flat pricing from a low
Slide 7: Overview
Overview For personal use only ▷ 125 vertical well locations (40 acres spacing) over the interpreted best 5,000 acres of reservoir in the trap area. Based on structural modelling, 3D seismic interpretation and well data. ▷ Vertical wells anticipated to produce 50 to 200 BOPD per well. ▷ On 1 March 2
Slide 8: Overview
Overview For personal use only ▷ Winchester will operate differently to CEGX. ▷ Winchester will use the latest drilling and completion techniques (such as short length multiple laterals). This will significantly improve well production and well economics. ▷ Winchester will optimize post production o
Slide 9: Producing Vertical Oil Wells
6 Producing Vertical Oil Wells For personal use only Current Oil Production Summary Current Gross Oil Production Current Net Oil Production Oil Well WEL’s WI % Per Day (bopd) Per Day to WEL (bopd) White Hat 20#1 16 bopd 50% 8 bopd White Hat 20#2 2 bopd 50% 1 bopd White Hat 21#1 112 bopd 50% 56 bopd
Slide 10: Oil Production
Oil Production For personal use only December September June March December Gross Oil Production (bo)* Quarter Quarter Quarter Quarter Quarter 2016 2016 2016 2016 2015 Oil Production (Gross 100%WI) 37,876 35,428 26,159 26,761 19,774 Oil Sales 37,642 35,113 26,537 26,839 19,525 (Gross 100%WI) Net Oil
Slide 11: Growing Oil Production and Cash Flow
Growing Oil Production and Cash Flow For personal use only Gross BOPD and Cash Flow (US$) 450 700000 400 600000 350 500000 300 Monthly Cash Flow US$ Average BOPD 400000 250 200 300000 150 200000 100 100000 50 0 0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Gross Avg Daily Product
Slide 12: 10,000 Acre Oil Trap
10,000 Acre Oil Trap For personal use only Slide 10
Slide 13: Excellent Vertical Well Economics
Excellent Vertical Well Economics For personal use only ▷ Permian Basin is a low cost/low breakeven oil and gas basin. Low cost vertical wells: only US$800,000 to drill and complete. ▷ Excellent well economics at today’s low oil price: ▶ 106% pre-tax IRR for 100 BO IP recovering 100,000 BO with US$5
Slide 14: Vertical Well Economics - US $55 BO
Vertical Well Economics - US $55 BO For personal use only ▷ Economic Results: ▶ Undisc Cash Flow ($): US$2,535,920 ▶ Disc Cash Flow @10% ($): US$1,751,800 ▶ Return on Investment (Undisc): 4.2 : 1 ▶ Internal Rate of Return (IRR)(%): 106% ▶ Initial Production (IP): 100 Bopd ▶ Capital Investment: US$80
Slide 15: Vertical Well Economics - US $65 BO
Vertical Well Economics - US $65 BO For personal use only ▷ Economic Results: ▶ Undisc Cash Flow ($): US$3,246,000 ▶ Disc Cash Flow @10% ($): US$2,276,130 ▶ Return on Investment (Undisc): 5.1 : 1 ▶ Internal Rate of Return (IRR)(%): 134% ▶ Initial Production (IP): 100 Bopd ▶ Capital Investment: US$80
Slide 16: Short Radius Lateral Wells
Short Radius Lateral Wells For personal use only ▷ Improve well production and economics by drilling short radius lateral wells (modern, cutting edge proprietary technology). ▷ 4 lateral legs of 500 feet each (2,000 gross feet). Each leg can be at a different level and at a different orientation. ▷
Slide 17: Oil Resources
Oil Resources For personal use only ▷ 1,000 acres of high potential reservoir based on structural modelling, 3D seismic interpretation and well data from the current 6 producing vertical oil wells and old nearby vertical wells (Suggs Field). ▷ 25 vertical well locations over 1,000 acres (40 acres sp
Slide 18: Asset Values
Asset Values For personal use only ▷ Gross oil production is 410 bopd with mild decline. Revenue earned by Winchester in the last quarter was US$708,900 at an average sale price of US$49 per BO. ▷ Winchester values its current oil production at US$50,000 per net flowing BOPD post royalty. 410 BOPD m
Slide 19: How to Drive the Share Price?
How to Drive the Share Price? For personal use only ▷ Enterprise value is currently A$16.2M which is only A$847 (US$650) per net acre across 19,110 net acres. ▷ Cash at bank is A$3.1M. ▷ No debt. ▷ Winchester will be a different operator to CEGX. ▷ Objective: prove we can consistently drill commerci
Slide 20: Permian Basin - Stacked Targets
Permian Basin - Stacked Targets For personal use only A number of distinct potential oil pay zones have been targeted by Winchester on its 19,110 net acres. Upper Cline (“3 Fingers Shale”) (Unconventional) ▶ Blanket resource play. ▶ Present on all of WEL’s 19,110 acres. Lower Cline (“Lower Penn Shal
Slide 21: Experienced Board
Experienced Board For personal use only ▷ Board of WEL has a combined 130 years of successful experience in oil and gas discovery, development and production in the USA and many other parts of the world. ▷ Key founders, directors and shareholders of WEL are Neville Henry (Houston based) and Peter Al
Slide 22: Experienced Board
Experienced Board For personal use only WEL has a strong and experienced Board with the skills required to develop WEL’s oil and gas assets in Texas and deliver shareholder value. Geologist and Resource Venture Capitalist with 49 years’ experience in Mineral and Petroleum Peter Allchurch Exploration
Slide 23: Performance Securities and Payments
Performance Securities and Payments For personal use only TYPE AMOUNT TERMS AND CONDITIONS Options 30,000,000 Each option has an exercise price of A$0.25 and a term which expires on 30 April 2019. Class A The Class A convertible milestones notes have no value unless the milestone is successfully rea
Slide 24: Contact Details
Contact Details For personal use only Neville Henry John Kenny Managing Director Director Tel: +1 713 333 0610 Mobile: +61 403 347 171 Cell: +1 832 656 9916 Email: jk@winchesterenergyltd.com Email: nh@winchesterenergyltd.com Australia USA Level 3 Two Riverway 18 Richardson Street 17th Floor West Per
Winchester Energy — Investor Presentation (February 2017) on 6ix