- Winchester Energy will raise a $2.5 million placement for its drilling at Mustang Oil Field
- The placement will issue 100 million shares for a price of $0.025 per share to raise $2.5 million
- Proceeds from the placement will be used for its drilling activities at the Mustang Oil Field
Winchester Energy will raise a $2.5 million placement for its drilling at Mustang Oil Field.
The placement will issue 100 million shares for a price of $0.025 per share to raise $2.5 million.
The company experienced a strong demand for the placement from existing shareholders and new investors.
Proceeds from the placement will be used for its drilling activities at the Mustang Oil Field, continued assessment of recently identified prospects and for general working capital.
Winchester Energy is an energy company with its operations based in Texas. It has a single focus on oil exploration, development and production in the Permian Basin of Texas.
The Mustang Oil Field is 17,000 acres on the east of the Permian Basin. The Permian Basin is the largest oil-producing basin in the USA.
The oil field has recently undertaken a successful development drilling with White Hat 20#3 has initial production (IP) of 306 bopd.
Managing Director Neville Henry is excited to see what Mustang Oil brings to the company.
“This highly successful capital raising will provide the Company with adequate
funding to immediately commence the drilling of a series of high-confidence
development wells which have the potential to significantly enhance oil production,” he said.
“Recently drilled discovery well White Hat 20#3 at the Mustang Oil Field has
already provided the Company with enhanced revenue in a short period,” he added.
The next Mustang well will spud in the coming weeks and Winchester will immediately commence completion activities at the recently drilled Arledge 16#2 well at the Lightning Prospect.