Winchester Energy Ltd (ASX:WEL) has commenced oil production from the White Hat 21#4 well in Nolan County, Texas and is recovering 170 to 200 barrels of fluid per day.
Most importantly, oil rates have progressively increased each day of production as the well cleans up. On 31 July 2016 the well produced 145 barrels of oil and 30 barrels of water.
The White Hat 21#4 well is the first of the 5 oil wells in the White Hat Oil Field where Winchester completed 3D seismic studies prior to the selection of the drilling location.
With the 5 White Hat lease wells now drilled, the company’s technical team has established an oil producing area in the Ellenburger Formation of about 10,000 acres.
Operator Carl E Gungoll Exploration LLC has a 50% working interest (WI) in the 5 wells with Winchester owning the other 50%.
Winchester also has a 75% WI in the 7,378 acres which surround and adjoin the existing White Hat wells.
Notably, White Hat 21#1 well continues to be one of the best producing wells in Nolan County.
The well has produced 62,949 barrels of oil from inception through to 30 June 2016. It has yet to commence a decline in oil production.
Winchester ended the June quarter with cash reserves of about $6.1 million.
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