THE ROADHOUSE BOWSER: Winchester Energy (ASX: WEL) is set to spud a step-out well in July at the company’s Mustang prospect, located in the Permian Basin of Texas, USA.
Winchester Energy explained the step-out well is to spud 420 metres from the previous Mustang Prospect well White Hat 20#3, which returned initial production (IP) of 306 barrels of oil per day (bopd) and continues to produce consistently.
The new well, White Hat 20#4, is a development well on the newly discovered Mustang Oil Field and is designed as a low risk well which, if successful, will further increase Winchester’s net oil production.
Winchester is planning a drilling program to develop the central lobe of the Mustang prospect that will include approximately 15 well locations.
The Mustang prospect has a Prospective Resource target best estimate P50 of 1.43 million bbls recoverable and a high estimate P10 of 3.76 million bbls recoverable from the Strawn Sand.
“The impending spud of White Hat 20#4 builds on the success of the White Hat 20#3 which returned exceptional flow rates of 306 barrels of oil per day,” Winchester Energy managing director Neville Henry said in the company’s announcement to the Australian Securities Exchange.
“White Hat 20#4 represents a low risk opportunity to further increase oil production and also increased confidence in the newly discovered Mustang Oil Field.
“We hope to extend the play further to the north and south and expect a series of large basin-floor sand lobes to occur within the Mustang area.
“The company intends to execute its Mustang development plan which focusses on relatively low risk locations initially stepping out from White Hat 20#3.
“This should see Winchester steadily expand its oil production and cash flow and with the El Dorado and Spitfire prospects representing yet more genuine upside for the company.”