A total of circa US$4.58 million has been spent to date on the Thomas 119-1H well.
The well has already reached a total depth of 10,265 feet after drilling 2,500+ feet in the Ellenburger Formation.
Importantly, oil and gas shows were encountered throughout the targeted interval and independent log interpretation indicated 700+ feet of potential pay zones in the Ellenburger Formation.
87.5% working interest for an additional expenditure of only US$455,000
Winchester, as the new operator of the Thomas 119-1H well, will drill two ultra-short radius laterals in the Thomas 119-1H well with drilling scheduled to commence in February 2018.
Based on the new 3D seismic, Winchester has chosen a trajectory designed to avoid potential faults which have a high chance of connecting to deeper aquifers.
The total budgeted cost of drilling these two ultra-short radius laterals is US$520,000.
Winchester’s share is US$455,000 for an 87.5% interest, along with its new joint venture partner US Energy Corporation of America Inc.
The company recently raised circa $3.5 million via the issue of shares to sophisticated and professional investors at $0.10 each.
The funds will be used to continue the drilling programs to enhance Ellenburger Formation oil production in Winchester’s 19,000 net acres of leasehold in the Permian Basin of Nolan County, Texas.