Winchester Energy Ltd · ASX:WEL
Winchester Energy — Good Oil Conference 2017
26 slides from Winchester Energy's conference presentation, Sep 13, 2017
Slide 1: Investor Presentation – Good Oil Conference Perth
For personal use only Investor Presentation – Good Oil Conference Perth Date: 13 September 2017 Please find attached the Investor Presentation being presented by the ASX Code: WEL Company’s newly appointed Chairman, Mr John Kopcheff, at the Good Oil Directors Conference in Perth on Wednesday and Thu
Slide 2: 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 3: Investment Highlights
Investment Highlights For personal use only ▷ Single focus on Permian Basin, Texas, most profitable basin in USA ▷ Large acreage position with high working interest and low royalties ▷ Growing low risk and low cost oil production, very profitable at current oil prices. Highly leveraged to oil price
Slide 4: Experienced Board
Experienced Board For personal use only ▷ Board of WEL has a combined 170 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 5: 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. John Kopcheff is a geologist and geophysicist with 45 years of experience in Australia, South East Asia, USA, South Amer
Slide 6: Houston, Texas based Management
Houston, Texas based Management For personal use only WEL has Houston, Texas based senior management with the skills required to develop WEL’s oil and gas assets in Texas and deliver shareholder value. Geologist based in Houston, Texas with 43 years in the worldwide oil and gas industry. He has dire
Slide 7: Capital Structure
Capital Structure For personal use only Cash A$2.9M Total shares on issue 244,691,332 Total options on issue 44,000,000 Debt Nil Market capitalisation @ A$0.08/share A$19.6M Enterprise Value of the Company’s assets A$16.7M Founders, Board and Management (% Ownership) 48%
Slide 8: How was Winchester able to build an acreage position in the Permian Basin?
How was Winchester able to build an acreage position in the Permian Basin? For personal use only WEL listed in late 2014 and has acquired acreage during the “down” years A$18 mill IPO - Winchester Energy
Slide 9: Permian Basin - Texas USA
Permian Basin - Texas USA Net 78 sq kms (19,210 Acres) For personal use only Winchester’s 19,210 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 PER
Slide 10: Why be in the Permian Basin? Stacked proven Oil Targets!
Why be in the Permian Basin? Stacked proven Oil 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 the Ellenburger and Strawn conventional oil horizons Upper Cline (“3 Fingers Shale”) (
Slide 11: Potential Oil Trap – Ellenburger carbonate formation
40 sq. km (10,000 acres) Potential Oil Trap Ellenburger carbonate formation For personal use only Winchester leases and surrounding area covered by 234 sq. kms (57,600 acres) of 3D seismic
Slide 12: Potential Ellenburger Oil Resources
Potential Ellenburger Oil Resources For personal use only ▷ Potential from 125 drill locations (40 acre spacing) of resource target of gross 15 million bbls recovered over interpreted 40 sq kms (10,000 acre) oil trap in the Ellenburger Formation only, based on 3D seismic, well data from current 8 pr
Slide 13: Undrilled Stratigraphic trap potential
Undrilled Stratigraphic trap potential Strawn ‘channel sand’ anomaly interpretation from 3D Inversion Volume Thickness For personal use only covers 8.1 sq. kms (2,000 acres) Strawn wells lateral to channel produce oil! A 20 metres Channel boundaries ‘Sand’ entry points to Channel B SCALE Slide 12 0
Slide 14: Undrilled Stratigraphic trap potential
Undrilled Stratigraphic trap potential 3D Seismic pre and post inversion showing For personal use only 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 Strawn Assume:100 bbl/ac ft Poten
Slide 15: Overview of production & well economics
Overview of production & well economics For personal use only ▷ 8 producing vertical oil wells on White Hat Ranch. Gross oil production 462 bopd. 49 deg API oil with associated gas. Net 224 bopd and 125 mcfd ▷ For 100 bopd IP vertical well recovering 100,000 BO with WTI US$45/bbl & US$2.75/mcf flat
Slide 16: 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: ▶ 79% pre-tax IRR for 100 BO IP recovering 100,000 BO with US$45
Slide 17: Producing Vertical Oil Wells
8 Producing Vertical Oil Wells For personal use only Gross Oil Production June 2017 Quarter Average Oil Well Gross Oil Production WEL’s WI % Net Oil Production to WEL Per Day White Hat 20#1 13 bopd 50% 6.5 bopd White Hat 20#2 111 bopd 50% 55.5 bopd White Hat 21#1 61 bopd 50% 30.5 bopd White Hat 21#2
Slide 18: Growing Oil Production and Cash Flow
Growing Oil Production and Cash Flow For personal use only 500 800000 Gross & Net BOPD and Quarterly Cash Flow (US$) 500 450 800000 700000 450 400 700000 600000 400 350 600000 350 US$ 500000 US$ 300 Flow 500000 BOPD Flow 300 BOPD Cash 250 400000 Average Cash 250 400000 Average Quarterly Quarterly 20
Slide 19: Vertical Well Economics - US $45/bbl
Vertical Well Economics - US $45/bbl For personal use only
Slide 20: 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 21: 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 22: Overview of Winchester as Operator
Overview of Winchester as Operator For personal use only ▷ Winchester has taken over operatorship from 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
Slide 23: Asset Values
Asset Values For personal use only ▷ Gross oil production is 462 bopd with mild decline. ▷ Winchester values its current oil production at US$50,000 per net flowing BOPD post royalty. 462 BOPD minus 23.5% royalty x US$50,000 = US$17.6m (100%WI post royalty). This values Winchester’s 50%WI in the 8 f
Slide 24: 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 successful drilling program. ▷ Successfully drilling and bringing on production at average IP 100 b
Slide 25: Come Visit Booth #21
Come Visit Booth #21 For personal use only Oil Production & Development ASX code: WEL Permian Basin - Texas - USA “Australian junior taking on the Permian heavyweights” RGN 2017
Slide 26: 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