Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Winchester Energy (WEL) has received firm commitments to raise $5 million to fund accelerated oil exploration in the Permian Basin, Texas
  • The company says it intends to issue 312.5 million new shares to sophisticated and institutional investors at 1.6 cents each
  • That issue price represents a 19 per cent discount to its 15-day volume weighted average price as of May 21
  • Proposed work includes the workover of four existing wells targeting the Cisco Sands, as well as drilling at the Bast Deep, Spitfire and Mustang Oil Field prospects
  • Winchester Energy is up 5 per cent to 2.1 cents per share

Winchester Energy (WEL) has received firm commitments to raise $5 million to fund accelerated oil exploration in the Permian Basin, Texas.

CPS Capital Group acting as lead broker and the company says it intends to issue 312.5 million new shares to sophisticated and institutional investors at 1.6 cents each. This represents a 19 per cent discount to its 15-day volume weighted average price as of May 21.

The shares will be issued in two tranches — roughly 172.7 million under the first and another 139.7 million under the second, subject to shareholder approval at a meeting scheduled for late July.

Around $600,000 will be allocated for the workover of four existing wells targeting the Cisco Sands. Drilling at the Bast Deep and Spitfire prospects will each receive $1.2 million, while $1 million will be set aside for drilling at the Mustang Oil Field.

The remaining $1 million will be used for any other necessary exploration work.

Winchester currently holds a 6738 hectare lease in the Permian Basin and produces roughly 144 barrels of oil equivalent per day, which generated around $500,000 in revenue during the March quarter of 2021.

As of December 31, 2020, Winchester’s resources and reserves were calculated at 495,800 barrels of oil in proven, probable and possible (3P) reserves and a combined 11.1 million barrels in contingent and prospective resources.

Winchester Energy is up 5 per cent to 2.1 cents per share at 2:36 pm AEST.

WEL by the numbers
More From The Market Herald

" Beach Energy (ASX:BPT) grows revenue despite production fall

Beach Energy (BPT) has seen its quarterly production fall seven per cent to 5.3 million barrels…
The Market Herald Video

" Invictus Energy (ASX:IVZ) completes funding for mobilisation of drilling rig

Invictus Energy (IVZ) has completed a capital raising program to support its flagship Cabora Bassa Project…

" Brookside Energy (ASX:BRK) mobilises on Flames Well

Brookside Energy Limited (ASX:BRK) provides an update on the drilling preparation for the Flames Well on…
Calima Energy ASX CE1 - Thorsby-Alberta

" Calima Energy (ASX:CE1) adds Leo#4 to drilling program

Calima Energy (ASX:CE1) adds a high impact unconventional oil well, Leo #4, to its drilling program…