- Winchester Energy will raise over $6 million to speed up oil exploration and production in the Permian Basin in Texas
- The Permian Basin is the largest oil-producing basin in the U.S. and the company has 17 thousand plus acre lease in the area
- The oil explorer has seen positive results from drilling and believes it is well-positioned for growth
- Winchester is up 8.93 per cent and selling shares for 6.1 cents at market close
Winchester Energy to raise $6.4 million to accelerate oil exploration and production activity in the Permian Basin, Texas.
The company will issue 128 million shares at a price of $0.05 cents per share to institutional and sophisticated investors.
Managing Director Neville Henry says the placement was strongly supported.
“We look forward to putting the capital to work over the coming months in the program outlined in the previous quarterly report,” Neville said.
Winchester has a 17,266-acre lease in the Permian Basin, the largest oil-producing basin in the U.S.
The oil explorer has identified several prospects across its leasehold and is currently undertaking development drilling at the newly discovered Mustang Oil Field.
Production from the Mustang Field and Lightning Prospect, as well as production from the Ellenburger Group, Winchester believes it is well-positioned to significantly build oil production.
Plans are underway to increase development drilling and cash flow while maintaining an ongoing exploration program.
“Following recent drilling success at the Mustang Oil Field and the exciting new Lightning Prospect discovery, Winchester has recorded increases in oil production to an average of 506 gross barrels of oil per day (bopd), Winchester working interest is 381 bopd,” Nevill told the market.
Neville said these results showed a significant increase in revenue, as recently announced on November 4.
Gleneagle Securities and CPS Capital are the Lead Managers to the placement.
Winchester Energy is up 8.93 per cent at market close and is selling shares for 6.1 cents each.