Winchester Energy Ltd · ASX:WEL
Winchester Energy — Australian Energy and Minerals Investor Conference 2021
60 slides from Winchester Energy's conference presentation, Mar 17, 2021
Slide 1: Australian Energy and Minerals Investor Conference
Australian Energy and Minerals Investor Conference 17 March 2021
Slide 2: Disclaimer
Disclaimer This document is for information purposes only. It is not a prospectus, disclosure document The estimated petroleum reserves and resources referred to in this presentation or offering document under Australian law or under any other law and does not constitute an were first announced to t
Slide 3: Winchester Energy Limited Summary
Winchester Energy Limited Summary Pumpjack in Winchester’s Mustang Oil Field, Nolan County, Texas • Established US oil and gas explorer and producer • Listed on ASX in 2014 (ASX Code: “WEL”) • Operations office in Houston, Texas • Corporate office in Perth, Western Australia • Winchester operates 18
Slide 4: Company Snapshot Corporate
Company Snapshot Corporate Key Metrics Operating Metrics ASX Code • WEL Daily Production2 • 252 boepd gross; 187 boepd net to WI Shares on issue • 691 m Lifting Costs • US$8.46 / barrel Unlisted options on issue • 45 m Qtly Net Revenue (Q4 2020)2 • A$507 K Share price • A$0.023 (12 March 2021) Lease
Slide 5: Company Snapshot Technical
Company Snapshot Technical WEL Reserves and Resources as of 31 December 20202,3 • Large lease position in the Permian Eastern Shelf (Nolan / Coke Counties) Reserves - WEL Net Interests - Nolan County, 31 December 2020 Net Reserves BO equiv. • High Working Interests; Established Production Category O
Slide 6: Permian Basin, Texas
Permian Basin, Texas Winchester active on Eastern Shelf “The Permian Basin Is Now The World's Top Oil Producer”1 WEL Area Of Operations – Permian Eastern Shelf - Nolan & Coke Counties Permian Basin Stacked, proven, prolific oil producing horizons Technical Remaining Recoverable 20 billion bo & 16 TC
Slide 7: Nolan County Project - Land and Lease Status
Nolan County Project - Land and Lease Status Eastern Shelf - Nolan and Coke Counties SW Nolan County – Winchester leases and recent wells Winchester’s Nolan County Project covers a large contiguous position, with over 19,500 net acres under lease, primarily in Nolan County. Thomas Ranch Whiteside Br
Slide 8: Nolan County Project – Depositional Environments
Nolan County Project – Depositional Environments Key Zones and Potential Eastern Shelf Stratigraphy (in part) • Local production from multiple clastic and carbonate Shelf Carb Tertiary – sporadic porosity/pay – serendipity play reservoirs in the Cambrian, Shelf Clastic Tertiary – sporadic porosity/p
Slide 9: Nolan County Project – Historical Production and WEL 3D Seismic
Nolan County Project – Historical Production and WEL 3D Seismic Winchester properties and 3D seismic overlying local production • Over 18,856 contiguous net acres under WEL 3D Seismic lease, primarily in Nolan County. 65 sq mi Maryneal S Doris • Leases covered by 65 mi2 of 3D seismic – Nena exclusiv
Slide 10: Nolan County Project - Prospect and Play Summary
Nolan County Project - Prospect and Play Summary 2021 Review - Multiple Prospects and Play Types Winchester Energy leases and oil fields, prospects and leads • Mustang Field (Fry Sand, Elbgr) Winchester • Bast Field (Bast Sand) Production • Lightning (Cisco) Winchester • Greater Lightning Resources
Slide 11: Nolan County Project - Prospect and Play Summary
Nolan County Project - Prospect and Play Summary Gross Resources (Unrisked)1 Gross Contingent Resources P90 mboe P50 mboe P10 mboe Lightning Cisco 2,174.2 4,822.5 11,015.3 Bast Field (Primary) 143.0 438.5 935.2 Bast Field (Secondary) 242.2 471.7 932.0 Total 2,559 5,733 12,883 Gross Prospective Resou
Slide 12: Nolan County Project Proposed Forward Program
Nolan County Project Proposed Forward Program Q2/Q3 2021 Q3/Q4 2021 2022 • Ongoing production from Mustang • Ongoing production • Ongoing production and vertical drilling and Bast oil fields. • Low/Med-risk drill/workover program with • Introduce horizontal drill program (Lightning • Low-risk drill/
Slide 13: Upcoming Activity
Nolan County Project Upcoming Activity 2021 Q2/Q3 Program Bast Deep Mustang Development Workovers AEMIC 17 March 2021 13
Slide 14: Bast Deep - High Impact Potential
Bast Deep - High Impact Potential Successful Cambrian Test will be “Game-Changer” for Winchester Bast Deep Bast Deep Prospect 0.95 million boe (P50/Best Estimate) Gross Prospective Resources1 2.34 million boe (P10/High Estimate) Primary Target Cambrian Sandstone (4 way dip) Secondary Target Ellenbur
Slide 15: Cambrian – High Impact Exploration Play
Nolan County Cambrian – High Impact Exploration Play Cambrian Prospectivity - Regional Cambrian Production Summary – Fort Chadbourne Fault trend Cambrian Fields – Fort Chadbourne Fault Trend Field Cum Production Producing Zones White Flat 13.4 mmBO Cambrian, Ellenburger, Caddo Dora North 7.7 mmBO Ca
Slide 16: Cambrian – High Impact Exploration Play
Nolan County Cambrian – High Impact Exploration Play Cambrian Prospectivity – Regional Charge Model Cambrian Charge Model Cambrian Fields and Potential Traps Nolan County Line of Section Permian Basin Pre-Cambrian Structure AEMIC 17 March 2021 16
Slide 17: Cambrian – High Impact Exploration Play
Nolan County Cambrian – High Impact Exploration Play Cambrian Prospectivity - Regional Cambrian Prospects and Leads Bast Deep Prospect Cambrian Play to be drilled in May • Primary Target – Structural closures at Cambrian Sandstone level. • This thick, porous widespread reservoir has produced from ne
Slide 18: Bast Deep – Strawn Sands offer additional low risk target
Bast Deep – Strawn Sands offer additional low risk target Bast Deep well to also penetrate western side of existing oil field Bast Field - Strawn Sst Depth Structure Map showing Production and proposed Bast Deep location. Bast Deep • Secondary Target is the Upper Strawn sandstone. This 10’ sand has
Slide 19: Upcoming Activity
Nolan County Project Upcoming Activity 2021 Q2/Q3 Program Bast Deep Mustang Development Workovers AEMIC 17 March 2021 19
Slide 20: Mustang development well – WHR 21-06
Nolan County Project – 2021 Q2/Q3 Program Mustang development well – WHR 21-06 WHR 21-06 Reserves (PUD) 74 mboe Mustang Field Primary Target Strawn (Fry Sand; 5,000- 6,000 ft) Secondary Target Ellenburger Fm (7,000 ft) Additional Targets None Programmed Total Depth 7,200 ft DHC: US$350,000 Estimated
Slide 21: Development Program Fry Sand Step-out
Nolan County Project – Development Program Fry Sand Step-out Mustang Field – Proven and Undeveloped Prodn over Hilbert Amp Field Mapping The Mustang Oil Field is a stratigraphic trap formed by the up-dip pinch- out of the westerly dipping Fry Sst. The Fry was deposited from the Mustang Proved Must
Slide 22: Development Program Fry Sand Step-out
Nolan County Project – Development Program Fry Sand Step-out Fry Net Pay from Wells – Hilbert Amp Guidance Field Mapping The Mustang Oil Field is a stratigraphic trap formed by the up-dip pinch-out of the westerly dipping Fry Sst. The Fry was deposited from the adjoining shelf to the east via a se
Slide 23: Upcoming Activity
Nolan County Project Upcoming Activity 2021 Q2/Q3 Program Bast Deep Mustang Development Workovers AEMIC 17 March 2021 23
Slide 24: Workovers - fracture stimulate Cisco Sands
Nolan County Project – 2021 Q2/Q3 Program Workovers - fracture stimulate Cisco Sands Bast #1 / McLeod 17-03 Workovers McLeod 17-03 Estimated Recovery per well 15 mbo each Bast #1 Primary Stimulation target Cisco Sands Secondary Target None Additional Targets None Estimated Workover Costs (100%) US$1
Slide 25: Bast #1 proposed workover
Nolan County Project – 2021 Q2/Q3 Program Bast #1 proposed workover (log analysis identifies untested potential pay) Cisco Zones for Test AEMIC 17 March 2021 25
Slide 26: McLeod 17-03 proposed workover
Nolan County Project – 2021 Q2/Q3 Program McLeod 17-03 proposed workover (log analysis identifies good, unstimulated pay) Cisco Zones for Stimulation AEMIC 17 March 2021 26
Slide 27: Nolan County Project – 2021 Q3/Q4 Program
Nolan County Project – 2021 Q3/Q4 Program Nolan County Project 2021 Q3/Q4 Candidate Prospect Details Meteor Spitfire El Dorado Mustang North 63-01 Hurricane 64-02 Lightning Upper Cisco Horizontal AEMIC 17 March 2021 27
Slide 28: Meteor Cambrian Prospect
Nolan County Project – 2021 Q3/Q4 Program Cambrian Prospect Meteor Gross Prospective 1.94 mmboe (P50) Resources1 4.69 mmboe (P10) Meteor Primary Target Cambrian Sandstone (7,800 ft) Secondary Target Ellenburger Fm (7,000 ft) Additional Targets Odom Programmed Total Depth 7,800 ft DHC: US$500,000 Est
Slide 29: Meteor Prospect High Impact Cambrian Test – 7,800 ft
Meteor Prospect High Impact Cambrian Test – 7,800 ft Depth Structure Map – Top Cambrian Fm Meteor • Primary Target - Cambrian Sandstone at 7,800 ft. • 4 way dip structural closure mapped on high quality 3D Meteor seismic. • None of the local wells penetrate the Cambrian but out-of-structure Cambrian
Slide 30: Meteor Prospect High Impact Cambrian Test – 7,800 ft
Meteor Prospect High Impact Cambrian Test – 7,800 ft 21-2G Nearby Cambrian Penetration Seismic Cross Section shown proposed Meteor location (Hilbert) Meteor Meteor Dolomite TD ~7800’ Igneous AEMIC 17 March 2021 30
Slide 31: Nolan County Project – 2021 Q3/Q4 Program
Nolan County Project – 2021 Q3/Q4 Program Nolan County Project 2021 Q3/Q4 Candidate Prospect Details Meteor Spitfire El Dorado Mustang North 63-01 Hurricane 64-02 Lightning Upper Cisco Horizontal AEMIC 17 March 2021 31
Slide 32: Spitfire Prospect Strawn Channel Test – 7,200 ft
Spitfire Prospect Strawn Channel Test – 7,200 ft Spitfire Gross Prospective 2.7 mmboe (P50) Resources1 6.0 mmboe (P10) Spitfire Strawn Sandstone Channel Primary Target (6,000 – 6,500 ft) Secondary Target Ellenburger Fm (7,000 ft) Additional Targets Nil Programmed Total Depth 7,200 ft DHC: US$500,000
Slide 33: Spitfire Prospect Strawn Channel Test – 7,200 ft
Spitfire Prospect Strawn Channel Test – 7,200 ft Spitfire – Seismic Interpretation Spitfire Spitfire Spitfire • The Spitfire Prospect will test a channel feature mapped on 3D seismic. The interval was penetrated at the channel edge in the McLeod 213 Amerac #1, where it penetrated 30 feet of gross sa
Slide 34: Spitfire Prospect Seismic Anomaly Extent
Spitfire Prospect Strawn Channel Test – 7,200 ft; Seismic Anomaly Extent Spitfire – Mapped Anomaly Spitfire - 3D Seismic Definition • Prospect is defined on high quality 3D seismic and covers up to 1,200 acres. • Prospective areas (used in resource assessment): P90 = 320 ac; P10 = 1,050 ac • Cal
Slide 35: Spitfire Prospect Drill Location Correlation
Spitfire Prospect Drill Location Correlation Spitfire Prospect - Correlation Spitfire • The seismic anomaly is at the same level as the thin tight Gardner Spitfire stringers at 213-1 Amerac, which may be oil bearing. • The well to the east at Base 2 Carb Mustang are tight shale and limestone at this
Slide 36: Nolan County Project – 2021 Q3/Q4 Program
Nolan County Project – 2021 Q3/Q4 Program Nolan County Project 2021 Q3/Q4 Candidate Prospect Details Meteor Spitfire El Dorado Mustang North S63 Mustang North (Hurricane) 64-02 Lightning Upper Cisco Horizontal AEMIC 17 March 2021 36
Slide 37: El Dorado Prospect Cambrian / Ordovician Test – 8,000 ft
El Dorado Prospect Cambrian / Ordovician Test – 8,000 ft El Dorado Gross Prospective 1.36 mmboe (P50/Best Estimate) Resources1 3.52 mmboe (P10/High Estimate) El Dorado Cambrian Sandstone Primary Targets Ellenburger Fm (7,000 ft) Secondary Target Cisco Sands (4,000 – 4,800 ft) Additional Targets Odom
Slide 38: El Dorado Prospect Cambrian / Ordovician Test – 8,000 ft
El Dorado Prospect Cambrian / Ordovician Test – 8,000 ft Faults from wells El Dorado Prospect Ellenburger Formation Fields, Lineaments and Cum Production Faults from seismic • Closed structure of over 1000 ac. Ellenburger Fields Bridgford Big Silver • Ellenburger shows structural All wells >6000’ cl
Slide 39: El Dorado Prospect Cambrian / Ordovician Test – 8,000 ft
El Dorado Prospect Cambrian / Ordovician Test – 8,000 ft Isochron Map: Interval from Big Red Shale to Ellenburger Formation El Dorado Prospect - Ellenburger Data limitations / edge effects • The superior data quality of the South Antelope cube allows an isochron to the Possible deep faults Ellenburg
Slide 40: El Dorado Prospect Cambrian / Ordovician Test – 8,000 ft
El Dorado Prospect Cambrian / Ordovician Test – 8,000 ft El Dorado Prospect Depth Structure Map – Top Ellenburger Formation • El Dorado - closed structure of over 1000 acres • Ellenburger shows structural closure and processing has suggested changes in velocity of the carbonates that may correspond
Slide 41: El Dorado Prospect
El Dorado Prospect El Dorado Prospect • El Dorado - closed structure of over 1000 acres • Ellenburger shows structural closure and processing has suggested changes in velocity of the carbonates that may correspond to potential areas of fracture and potentially karstification. • Four way closure also
Slide 42: El Dorado Prospect Cisco Sands - El Dorado Incision
El Dorado Prospect Cisco Sands - El Dorado Incision – Traverse from Lightning El Dorado Prospect El Dorado Seismic Section – Cisco incision • Cisco Sand potential at El Dorado based on well location that should intersect interpreted Cisco Sand Channel – separate from Lightning Cisco. Cisco El Dorado
Slide 43: Nolan County Project – 2021 Q3/Q4 Program
Nolan County Project – 2021 Q3/Q4 Program Nolan County Project 2021 Q3/Q4 Candidate Prospect Details Meteor Spitfire El Dorado Mustang North S63 Hurricane 64-02 Lightning Upper Cisco Horizontal AEMIC 17 March 2021 43
Slide 44: Mustang North Prospect - WHR 6301
Mustang North Prospect - WHR 6301 WHR 6301 - Low-risk field extension Mustang North - WHR 6301 Gross Prospective 623 mboe (P50/Best Estimate) Resources1 1,344 mboe (P10/High Estimate) Mustang North Primary Targets Strawn (Fry Sand; 5,000- 6,000 ft) Secondary Target Canyon Reef; Ellenburger Fm Additi
Slide 45: Mustang North Prospect - WHR 6301
Mustang North Prospect - WHR 6301 Amplitude – Top Fry (Hilbert) – Gross Sand Overlay WHR 6301 WHR 6301 - Mustang North Mustang North 63-01 • Remapping of 3D seismic indicates productive trend at Mustang Central potentially extending to the north- east into Sections 38 and 63. Mustang North • Initial
Slide 46: Mustang North Prospect - WHR 6301
Mustang North Prospect - WHR 6301 Low-risk field extension Fry Interpreted Fans – Mustang – Mustang North and Extension WHR 6301 - Mustang North Mustang North Fan Mustang North Separate deposition but may be single 63-01 • Remapping of 3D seismic indicates flow unit with Mustang Central. productive
Slide 47: Nolan County Project – 2021 Q3/Q4 Program
Nolan County Project – 2021 Q3/Q4 Program Nolan County Project 2021 Q3/Q4 Candidate Prospect Details Meteor Spitfire El Dorado Mustang North 63-01 Hurricane 64-02 Lightning Upper Cisco Horizontal AEMIC 17 March 2021 47
Slide 48: Hurricane Prospect Canyon Reef and Fry potential
Hurricane Prospect Canyon Reef and Fry potential with substantial follow-up Hurricane 64-02 1.04 mmboe (P50/Best Estimate) Gross Prospective Resources1 1.91 mmboe (P10/High Estimate) Hurricane 6402 Primary Target Canyon Reef Secondary Target Fry Sand Additional Targets Ellenburger Fm (7,000 ft) Prog
Slide 49: Hurricane Prospect Canyon Reef Potential
Hurricane Prospect Canyon Reef Potential Isopach - 1 Carbonate (Canyon Reef) Mustang North – Hurricane 64-02 Gross porous zone SS top porosity • Prospective area covers 1,300 acres (from well control). There are five wells in the area with log pay; net pay ranges up to 200 ft and is expected to aver
Slide 50: Hurricane Prospect Canyon Reef Potential
Hurricane Prospect Canyon Reef Potential Stratigraphic Cross secn – Canyon Reef 6402 PL Mustang North Pod 1300 acres x 20’ x 40 bbls/acre-ft 1 Carb Log Pay 1 mmbls AEMIC 17 March 2021 50
Slide 51: Hurricane Prospect Canyon Reef analog well: 1991 Rendova Oil
Hurricane Prospect Canyon Reef analog well: 1991 Rendova Oil: Tubb-Christopher, Melvin C #1 - 68 feet interpreted pay Log Analysis: 64-1 Rendova (API: 35332161) Isopach - 1 Carb (Canyon Reef) Rendova 64-1 AEMIC 17 March 2021 51
Slide 52: Hurricane Prospect Canyon Reef analog well: 1986 Sun Expln
Hurricane Prospect Canyon Reef analog well: 1986 Sun Expln: Alderman, Ray “B” #1 Log Analysis: Sun Alderman B 64-1 (API: 353331958) Isopach - 1 Carb (Canyon Reef) Sun Alderman, Ray “B” #1 AEMIC 17 March 2021 52
Slide 53: Nolan County Project – 2021 Q3/Q4 Program
Nolan County Project – 2021 Q3/Q4 Program Nolan County Project 2021 Q3/Q4 Candidate Prospect Details Meteor Spitfire El Dorado Mustang North S63 Mustang North (Hurricane) 64-02 Lightning Upper Cisco Horizontal AEMIC 17 March 2021 53
Slide 54: Cisco “B” Sand Horizontal
Cisco “B” Sand Horizontal Lightning Area – Upper Cisco “B” Sand – 7,500 ft horizontal well Lightning Horizontal 4.82 mmboe (P50/Best Estimate) Gross Contingent Resources1 11.01 mmboe (P10/High Estimate) Lightning Hz Primary Target Upper Cisco “B” Sand Secondary Target - Additional Targets - Programm
Slide 55: Lightning Upper Cisco B Sand – Net Sand
Cisco “B” Sand Horizontal Lightning Upper Cisco B Sand – Net Sand Lightning - Upper Cisco B sand - Net Upper Cisco – “B” Sand Gross Cisco B Gross OIP estimated at Prospect 42 mmbo Net Cisco B Well Gross Contingent Resource (P50) Estimate: 4.8 million boe Sand distribution as mapped can accommo
Slide 56: Lightning Upper Cisco – Potential well-bore path
Cisco “B” Sand Horizontal Lightning Upper Cisco – Potential well-bore path Lightning – Cisco Cross Section showing proposed well bore Potential Well bore AEMC March 2021 56
Slide 57: Nolan County Project – 2021 Drilling Schedule
Nolan County Project – 2021 2021 Winchester Energy Ltd 2021 Drilling Schedule WEL WI Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Permian Basin Bast #1 Recompletion Phase 1 to July Upper Cisco Sand 92.0% • Apr – Bast #1 Workover Bast Deep 100.0% Cambrian Structure/Strawn • May – Bast Deep Well Hu
Slide 58: Nolan County Project – 2021 drilling opportunities
Nolan County Project – 2021 “Game Changer” potential drilling in May – other material prospects to follow Re-entries and Recompletions – cost-effective production boosts Identified Opportunities Bast Field (up to 3 wells) Lightning (McLeod 17-03) White Hat Ranch (Canyon Reef) Field Extensions
Slide 59: Nolan County Project – 2021 Summary
Nolan County Project – 2021 Summary Winchester Energy Pumpjack, Workover Rig, Oil being loaded at Arledge 16-02 Multiple Prospects • Winchester has new prospects defined by planned for 2021 both drilling and 3D seismic ready to drill in Drilling 2021 with considerable upside and large Working Intere
Slide 60: Contact details
ASX: WEL ABN 21 168 586 445 USA TWO RIVERWAY, SUITE 1700 HOUSTON TX 77056 +1 713 333 0610 AUSTRALIA 24 OUTRAM STREET, GROUND FLOOR WEST PERTH WA 6005 +61 8 9200 3743 WWW.WINCHESTERENERGYLTD.COM
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