Energy: Winchester reckons it has a whole lot of Texas tea; shares jump 18pc
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Of all the energy companies providing updates this morning, only Winchester Energy (ASX:WEL) stood out because it recovered significant oil.
The Texas-focused explorer has swabbed two intervals at its Arledge 16#2 well and the combined rate is 80 barrels of oil per day. Shares jumped nearly 20 per cent at market open.
The company called these results highly significant and reminded shareholders two intervals were yet to be tested. It not only believes more oil is present within these intervals but that these are more prospective.
Winchester attributed its higher sand content, superior wireline and mudlog response and its greater thickness to its beliefs that more oil is present.
But for now the two intervals that were tested will suffice as its cause for optimism. The first interval swabbed 100 per cent oil with an entry rate of 30-35 barrels of oil per day. The second, swabbed 80 per cent oil at 48 barrels per day.
The company conducted a $2.5m placement earlier in the month and also owns another oil field in the Permian basin – the Mustang field.
One well there, White Hat 20#3, is producing over 200 barrels of oil per day and Winchester is testing a second well (White Hat 20#5).
Winchester shares climbed 18 per cent at market open this morning.
Louisiana-focused Byron Energy (ASX:BYE) announced its exploration well was drilling ahead at 3,610 feet. It has cemented a casing string nearly 11 inches long at 3,600 feet. The well will be drilled to a depth of 11,466 feet.
IPB Petroleum (ASX:IPB) received a response to its submission to the National Offshore Petroleum Titles Administrator (NOPTA). NOPTA has said it does not support the duration of the proposed extended well at Idris or Gwydion. However it said it was willing to consider an extended production test once a licence was granted. IPB said it planned to continue discussions to agree on a work program with NOPTA.
Romania-focused ADX Energy (ASX:ADX) also announced a drilling milestone. It has reached 1,346m 13 days after it started drilling. It anticipates the first target reservoir intersection in four days and the total time to drill and evaluate the well will be 29 days.
Armour Energy (ASX:AJQ) is well on track for its upcoming gas exploration campaign in Queensland’s Roma Shelf. The company has completed the construction of two drill sites and has hired drilling contractors. The first well will be spudded next month and these are expected to be drilled to 2,100m.