- Winchester Energy (WEL) acquires a 100 per cent working interest in the Varn oil field in Texas
- The oil field reportedly comprises proven and probable reserves of 1.07 million barrels of oil equivalent made up of over 93 per cent oil
- WEL says the payment of US$415,000 (A$585,000), and the drilling of all required wells, constitute an up-front gross acquisition and development cost of US$5.61 (A$7.92) per barrel
- The company has also signed a memorandum of understanding with Cryptotherm, a liquid cooling solutions company, to commence a feasibility study in the area
- Shares in Winchester Energy were trading grey at 1.5 cents each just before midday AEDT
Winchester Energy (WEL) has acquired a 100 per cent working interest in the Varn oil field in Texas.
Located around 29 kilometres east of WEL’s existing production in the East Bermain basin, the site reportedly contains proven and probable oil reserves of 1.07 million barrels of oil equivalent comprising over 93 per cent oil.
Winchester said the upfront acquisition cost would be exclusively funded from its existing cashflow at a cost of US$5.61 (A$7.92) per barrel.
The Varn Oil Field is made up of nine leases comprising a total of 1145 acres located in Taylor County, near Winchester’s Nolan County operations.
According to WEL, nine leases are reportedly in the very advanced stages of being converted to one single oil and gas unit which, in its entirety, will be held by production following the drilling of one well.
The company has also signed a memorandum of understanding with liquid cooling solutions company Cryptotherm. The two companies will commence a feasibility study to supply natural gas from the Varn site for a range of power-intensive computational applications.
Shares in Winchester Energy were trading grey at 1.5 cents each at 11:55 am AEDT.