Winchester Energy Continues Development of Mustang Prospect

THE BOWSER: Winchester Energy (ASX: WEL) has formulated a development plan to accelerate oil production from the Strawn Fry Sand member of the Mustang prospect in the Permian Basin of Texas, USA.

Winchester Energy is developing the plan following its recent success with White Hat 20#3 that has initial production of 306 barrels of oil per day (bopd).

Winchester has commissioned independent U.S. based petroleum consultants, Mire & Associates, Inc. to conduct an optimization study and update of the Gross Prospective Resources of the Strawn Sand Fry member within the Mustang prospect.

The company has completed development optimisation studies that identified a further nine well locations within the central Mustang area followed by up to a possible further 25 wells across Mustang North and South (total of 34 wells) subject to ongoing development drilling success.

Recent observations documenting modest associated gas flow from White Hat 20#3 have led Winchester to commence work to connect the well to gas sales.

The gross prospective gas resource converted to barrels of oil equivalent (boe) has also been factored into a revised Gross Prospective Resource estimate.

Incorporating new data from White Hat 20#3, the Mustang Prospect Prospective Resource target best estimate has a P50 of 2.03 million barrels of oil equivalent (mmboe) recoverable and a high estimate P10 of 3.77mmboe from the Strawn Fry Sand member.

The original oil in place in the Fry Strawn Sand member has increased to a best estimate P50 of 10.8 million barrels of oil in place and a high estimate P10 of 16.9 million barrels of oil.

Winchester indicated a new well, White Hat 20#4, is on schedule to spud in July that is anticipated to be followed by White Hat 20#5 (permitting underway) which will be spudded shortly thereafter.