Winchester Energy Limited is pleased to provide the following estimates of 1P, 2P and 3P reserves for the White Hat 21#1 well (Winchester 50%WI):
As reported on 22 October 2015, the average daily production rate over the first 30 days of production (Initial 30 Day Production Rate or IP30) from the White Hat 21#1 well was 201 barrels of oil (bo) and 2 barrels of water (bw) for a total production of 6,030 barrels of oil. Winchester is entitled to 50% of net proceeds after royalty payments of 23.5% to the oil and gas mineral rights owners. Carl E Gungoll Exploration LLC (CEGX), the Operator of White Hat 21#1, is entitled to the other 50% of net proceeds.
The estimate of gross 1P reserves is 84,000 bo. The estimate of gross 2P reserves is 162,000 bo. The estimate of gross 3P reserves is 515,000 bo. Using the gross 2P reserve estimate of 162,000 bo as the estimated ultimate recovery (EUR), the White Hat 21#1 well has an internal rate of return (IRR) of 106%.