Winchester Energy Ltd · ASX:WEL
Winchester Energy — Investor Presentation (April 2020)
24 slides from Winchester Energy's investor presentation, Apr 1, 2020
Slide 1: Company update
Company update Date: 1 April 2020 Please find attached a Winchester Energy Ltd presentation. ASX Code: WEL Directors Laurence Roe Non-Executive Chairman Neville Henry Managing Director Larry Liu Non-Executive Director Authorised by: Tony Peng Non-Executive Director Neville Henry James Allchurch Mana
Slide 2: Oil Production & Development
Oil Production & Development Permian Basin - Texas , USA ASX:WEL Update - 31 March 2020
Slide 3: Disclaimer
Disclaimer This document is for information purposes only. It is not a prospectus, disclosure document or The estimated total prospective resources referred to in this presentation were first offering document under Australian law or under any other law and does not constitute an announced to the AS
Slide 4: Positioning for Tough Times Ahead and Preparing for Future Sunny Days
Positioning for Tough Times Ahead and Preparing for Future Sunny Days • Presentation prepared for Australian Energy and Minerals Investor Conference March 25th (cancelled) • Winchester prepared this presentation prior to the double shock of the Covid-19 pandemic expansion and the oil price collapse
Slide 5: Company Background - Winchester Energy Ltd
Company Background - Winchester Energy Ltd (ASX: WEL) • Independent exploration and production company based in Houston, Texas USA with principal focus on the acquisition, exploration and development of oil and natural gas in the Permian Basin. • Listed on the Australian Stock Exchange since 2014 –
Slide 6: Why explore in the Permian Basin, Texas?
Why explore in the Permian Basin, Texas? “The Permian Basin is currently the best oil address in the world outside of the Middle East – 2nd largest oil field after Ghawar.” Forbes 2017 Winchester Energy is the only ASX-listed company with its sole focus in the Permian Basin Still Many New Plays poss
Slide 7: Production and Revenue Growth - 2019
Production and Revenue Growth - 2019 ✓ Growing Production 312 bopd production net to Winchester WI in Dec 2019 quarter ✓ Strong Revenue Growth A$1.8M net revenue in Dec 2019 quarter ✓ Active growth strategy to boost production, cash-flow ✓ Debt-free ✓ Operator ✓ 17,000 Net Acres ✓ Permian Basin 31 M
Slide 8: Capital Structure & Share Price
Capital Structure & Share Price Note: WEL Shares trading at $0.019 on 24 March 2020 Cash on hand WEL Share Price Graph 29 Feb 2020 A$6.5 Million 9.0 Total shares on issue 687 Million 8.0 Total options on issue @A$0.12/share 44 Million Current Market Cap (24 March 2020) 7.0 @ 1.9 cents/share A$13.1 M
Slide 9: Why Winchester is Different Post-March 8, 2020
Why Winchester is Different Post-March 8, 2020 Striving to maintain strong revenue stream, lower cost of development and good economics at today’s oil and gas prices. Experienced and • Solid and experienced technical and operational foundation in place who have seen it all before and Disciplined Tea
Slide 10: Why Winchester is Different
Why Winchester is Different • With a solid foundation in place for building a valuable oil and gas production company, we Positioned for are carefully evaluating and pursuing low-risk Growth exploration opportunities using strict criteria and a disciplined approach. • Our strategy is to grow through
Slide 11: Winchester Energy in the Permian Basin
Winchester Energy in the Permian Basin “The Permian Basin is currently the best oil address in the world outside of the Middle East – 2nd largest oil field after Ghawar.” Forbes 2017 Winchester Energy is the only ASX-listed company with its sole focus in the Permian Basin. Winchester Energy “C” • Ov
Slide 12: Development / Appraisal Programs & Exploration Prospects
Development / Appraisal Programs & Exploration Prospects Mustang Development Targets P50: 2.03 mmboe* P10: 3.78 mmboe* Mustang Central Mustang South Mustang North Lightning Appraisal Program P50: 1.95 mmbo P10: 6.39 mmbo* Lightning Exploration Prospects Spitfire P50: 4.99 mmbo* El Dorado P50: 1.27 m
Slide 13: Proven Conventional Reservoirs
Proven Conventional Reservoirs Mustang Lightning Spitfire El Dorado Strawn Sand Cisco stacked sands Strawn Sand & Cisco Sand, Odom and (Fry Member) Ellenburger Limestone Ellenburger Limestones Gross Prospective Gross Prospective Gross Prospective Gross Prospective Recoverable Resource Recoverable Re
Slide 14: Mustang Oil Field - Development Program
Mustang Oil Field - Development Program • The Fry Sandstone is the uppermost sand of the Strawn-age sediments. • Production from the Mustang oil field is from the Mustang Central area, in the White Hat Ranch lease; areal extent is estimated as just over 1,000 acres. • Additional lobes are interprete
Slide 15: Mustang Oil Field - Additional Prospectivity
Mustang Oil Field - Additional Prospectivity Interpreted Summary sand pods • The Fry Sand remains the primary target at Mustang. • 3D seismic mapping indicates that the Fry is distributed in discrete “pods” within the lobes. • Additional targets are mapped in the shallow Canyon and Cisco sands - a p
Slide 16: Mustang Oil Field – Seismic Expression
Mustang Oil Field – Seismic Expression SW NE 2001 2004 2003 2005 2002 3902 Mustang North Penn Shale Penn Carb Fry Sand Fry Sand Maximum amplitude map FrySS@5962’ FrySS@6073’ FrySS@5926’ FrySS@5992’ Mustang North FrySS@5953’ FrySS@6006’ 3901 2006 3902 3803 2002 2005 2003 2001 2004 31 March 2020 winch
Slide 17: Exploration Prospect - Spitfire 'Strawn Channel'
Exploration Prospect - Spitfire ‘Strawn Channel’ Seismically-defined Strawn Channel prospect • Spitfire 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 dr
Slide 18: Exploration Prospect - Spitfire 'Strawn Channel'
Exploration Prospect - Spitfire ‘Strawn Channel’ Seismic line XL1110 using velocity imaging The Spitfire Prospect will test a channel feature on 3D seismic. The interval was penetrated at the channel edge in the McLeod 212 Amerac #1. where it penetrated 30 feet of gross sand with 7 feet of calculate
Slide 19: Exploration Prospect - Lightning
Exploration Prospect - Lightning On Lower Cisco sand CCSS-3 fairway New Upper & Lower Cisco sand oil discovery • Arledge 16#2 was a re-drill of the 1982 Arledge Upper Cisco Sand CCSS-2 16#1 well testing an Upper and Lower Cisco Arledge 16 #2 laminated sand and shale section between 4,700 McLeod 17 #
Slide 20: Exploration Prospect - Lightning
Exploration Prospect - Lightning New Upper & Lower Cisco sand oil discovery Successful completion for W Arledge Lightning #1 (16#1 Re-Entry) Prospect Pat 1 E production of the Upper and Lower Cisco sands - with gross 490 ft oil column Cisco - opens up a major new stratigraphic play of slope channel
Slide 21: Exploration Prospect - El Dorado
Exploration Prospect - El Dorado El Dorado Prospect Overview 4 Way Closure on Cisco - South of Lightning • El Dorado is a 3D seismically-defined four-way dip structural closure at the Strawn and Ellenburger Limestone horizons. • Closure covers up to 1,000 acres. • Mapped closure includes the Upper C
Slide 22: Exploration Prospect - El Dorado
Exploration Prospect - El Dorado Arbitrary Seismic Line through the prospect El Dorado A El Dorado 240 #1 Proposed Location 2009 Strawn Ellenburger Drill Location “A” Show Well Closure at Elbg, Strawn, Penn Carb Arledge Lease McLeod Lease 31 March 2020 winchesterenergyltd.com 21
Slide 23: Summary - Winchester Energy Ltd
Summary - Winchester Energy Ltd (ASX: WEL) ✓ Active and Successful ✓ Debt-free & Cash-Flow positive ✓ High working interests ✓ Five contiguous leases - 17,000 net acres ✓ 3D seismic over approximately 100 sq miles ✓ Exciting Exploration & Development Portfolio ✓ Recent Discoveries; Lightning Prospec
Slide 24: Oil Production & Development
Oil Production & Development Permian Basin - Texas , USA ASX:WEL Update 25 March 2020
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