THE BOWSER: Winchester Energy (ASX: WEL) has received firm commitments for the placement of approximately 100 million shares at an issue price of 2.5 cents per share to raise approximately $2.5 million.
Winchester Energy indicated the net proceeds from the Placement will be used to undertake development drilling activities at the Mustang Oil Field at the company’s 17,000 acre leasehold position in the eastern shelf of the Permian Basin, Texas as well as the continued assessment of recently identified prospects.
“Recently drilled discovery well White Hat 20#3 at the Mustang Oil Field has already provided the company with enhanced revenue in a short period,” Winchester Energy managing director Neville Henry said in the company’s announcement to the Australian Securities Exchange.
“This highly successful capital raising will provide the company with adequate funding to immediately commence the drilling of a series of high-confidence development wells which have the potential to significantly enhance oil production.
“The next Mustang well will spud in the coming weeks and the company will also immediately commence completion activities at the recently drilled Arledge 16#2 well at the Lightning prospect which recorded a highly encouraging 45 feet of calculated net oil pay in the Cisco Sands.”