Winchester Energy Ltd (ASX:WEL) has decided to spud (drill) a sixth vertical well on the White Hat lease in Nolan County, Texas.
Winchester owns a 75% working interest in the oil and gas mineral rights of the 7,378 acres which surround and adjoin the existing 5 White Hat wells.
Operator Carl E Gungoll Exploration LLC has a 50% working interest in the 5 wells with Winchester owning the other 50%.
Winchester will carry a 50% working interest in the new well - White Hat 38#1.
The White Hat 38#1 well is located 1,200 feet to the northeast of the recent commercially successful White Hat 21#4 vertical well.
Another well, White Hat 21#1, continues to be one of the best producing wells in Nolan County, producing 62,949 barrels of oil from inception through to 30 June 2016.
The proposed total depth of the new White Hat 38#1 well is about 7,000 feet. Winchester will pay 50% of the total budgeted cost of US$893,000.
The company had cash reserves of $6.1 million as at 30 June 2016.
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