Winchester Energy (ASX: WEL) has scooped up a 92% interest in the Bast oil field in Texas’ east Permian Basin.
The acreage is contiguous to Winchester’s existing McLeod Ranch oil field and hosts three historic modest producing wells that had an aggregate oil generation of 10 barrels per day.
According to Winchester, this enables the newly acquired area to be held by production – meaning there are no ongoing drilling commitments.
“As well as further consolidating Winchester’s dominant leasehold position in the wake of the discoveries at the Mustang and Lightning oil fields, the historic wells also represent a potential inexpensive opportunity for re-entry and completion across potential pay zones, such as the Cisco Sands, currently located behind pipe,” Winchester stated.
Activities across existing acreage
In addition to pegging up more acreage, Winchester has been busy advancing its existing leases.
The company has now begun drilling the White Hat 20#6 well within the Mustang oil field.
Winchester has a 75% working interest in the asset with private entity Carl E Gungoll Exploration holding a 25% working interest.
White Hat 20#6 is an offset well of White Hat 20#5, which had initial production of 192bopd.
Over at Winchester’s 50%-owned White Hat 39#2 well, wireline log interpretation has identified 30 feet of gross pay in the Strawn Sand.
Initial production at this asset is 20-30bopd with 20bbl of water per day. Carl E Gungoll and Winchester are currently reviewing the fracture stimulation program at the well.
Within the nearby Lightning oil field, Winchester is continuing completion and test work at Arledge 16#2.
To date, more than 6,000bbl of oil has been produced and sold from this well with the majority of the oil extracted from the Lower Cisco Sands.
The McLeod 17#3 well is Winchester’s second well to be drilled within the Lightning oil field.
This well was a follow up to Arledge 16#2 and was designed to test the Upper and Lower Cisco Sands.
Initial wire line logs have indicated 414ft of gross pay within both sections.
Once completion activities have finalised at Arledge 16#2, Winchester will begin testing McLeod 17#3 – initially focusing on the Lower Cisco Sands.
Revenue and production rise in December quarter
Today’s update follows a successful December 2019 quarter, where Winchester recorded a 50% increase in net oil and gas revenue to $1.79 million.
This was compared to the September 2019 quarter and driven by a 40% rise in average daily oil production for the period, with Winchester’s working interest share of production equating to 312bopd.
All up, Winchester’s working interest share of production for the December period was 28,702bbl – up from 20,556bbl in the September period, and 12,087bbl in the June quarter.