Low Cost Oil Production Permian Basin, Texas
HIGHLIGHTS
Winchester seeing oil prices improving and promising evidence
of a possible “V” shaped oil recovery.
To preserve operating capital Winchester has reduced oil
production operating costs (“OPEX” or “lifting costs”) to US$2.46/barrel and considerable effort has been undertaken to manage and balance its costs and revenues.
Oil sales were strategically deferred as of May 15, 2020, through
on-site storage, until June 2020. This realised an estimated increase of US$15 per barrel in oil sales revenue for May 15-31, 2020 production which had averaged 222 net barrels of oil per day (bopd), and gross 303 bopd.
With the potential of a sustained improvement in oil prices,
Winchester is turning its focus to future growth and is preparing to
execute several low-cost re-completions of existing wells to
augment existing production in the Mustang Field area.
Future operational planning includes completions of new pay
zones in several other wells, potentially followed by additional
drilling to expand existing production and subject to improved
and sustained commodity prices, further exploration drilling.
Winchester is also reviewing several new project/play
opportunities made possible by the low oil price environment.
For a lower priced oiler, they are my favourite, US based.
Current oil price is a pullback in my opinion. Northern Hemisphere heading into winter, the seasonal thing traditionally pushes the price up somewhat.
Entered today, with a medium timeframe in plan. (0.025)
6 month chart.
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