Winchester Energy Confirmed Good Standing Of McLeod Lease

Winchester Energy Confirmed Good Standing Of McLeod Lease

On 25 January 2019, Winchester Energy Limited (ASX: WEL), an oil and gas company has announced that the owner of the McLeod lease has confirmed that the lease is in good standing.

The McLeod lease, comprising 4,246 acres, incorporates the already identified El Dorado prospect. It is scheduled to be drilled in the early part of this year. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

The company has contacted the owners of the Arledge lease and is awaiting a response. Current legal advice from Winchester’s US-based lawyers has indicated that this lease also remains in good standing.

Winchester’s Managing Director, Mr. Neville Henry, stated that, as expected, the company has confirmed that the McLeod Lease is in good standing, showing the clear way for drilling of the highly exciting El Dorado Prospect.

On 24 December 2018, the company has announced that they are currently in the process of reviewing the status of both the Arledge and McLeod leases that in aggregate comprise approximately 7,200 acres of Winchester’s 17,000-acre lease position in the Permian Basin, Texas.

Both the leases are in good standing as indicated by Winchester’s US-based lawyers. If in the unlikely situation that these leases be determined otherwise, then funds raised pursuant to the current rights issue will be allocated to the Spitfire and Mustang prospects only which are located on the company’s surrounding 9,800 net acres.

Mr. Henry commented that in June 2018, Winchester undertook re-entry operations within the primary term of each lease. As an outcome, the company believes that these operations had fulfilled the requirements of the lease and as a result of that they extended the leases for 12 months until July 2019.

On 7 December 2018, the company has announced that they are launching a non-renounceable entitlement offer so that they can raise an approximately $2.85 million (before costs) based on 1 new fully paid ordinary share for every 2 shares held.

September Quarter Update: The company’s total revenue for the Q1 stood at USD 224,206. The company’s total oil revenue for the Q1 was accounted at USD 211,363, and total gas sales revenue was USD 12,843. The average sale price of each barrel of oil was USD 54.18.

As at 30 September 2018, the Company’s had cash and cash equivalent of USD 601,000 (over the prior quarter which was USD 1,150,000).

Half Yearly Financial Performance: The Company’s revenue for the half year stood at USD 739,573, (over the previous corresponding period which was $1,289,978). The Company’s net loss stood at USD 14,894,827, (over the previous corresponding period which was USD (587,843)).

On Balance Sheet front, Net Assets for the half-year stood at USD 5,577,376, (over the previous corresponding period which was USD 20,452,162).

As at 30 June 2018, the company had cash and cash equivalent of USD 1,150,000 (over the previous corresponding period which was USD 2,794,081).

Stock performance: The shares of Winchester Energy Ltd closed the day’s session at A$0.021 (25 January 2019). The company has 285.15 million outstanding shares with the market capitalization of circa $5.99 million. The stock has delivered the positive return of 8.33% over the past six months. During the last one month, WEL delivered the negative return of 28.91%.


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