Winchester Energy Limited provided an update on its field activities at the Varn Oil Field in Nolan County, Texas. The first four well locations have been drilled, cased and completed to a depth of 300ft by the surface drill rig. The wellheads are currently being fitted to all locations ahead of drilling by a larger rig commencing this week to extend the total depth of two of these wells to approximately 7,000 feet per well.

The sequencing of specialist drill rigs to complete the wells in batches results in significant cost and time savings for the Company. Winchester has a 100% working interest in the Varn Oil Field, located 18 miles to the east of the Company's existing producing assets in Nolan County, Texas. The Varn Oil Field contains existing Proven and Probable (2P) of 1,068,000 barrels of oil equivalent(boe1) comprised of 994,000 barrels of oil and 442 thousand cubic feet of gas (mmcf).

Production is to be derived from the Fry Sands (a sub-unit of the Strawn Sands) which, together with the Ellenburger Formation, is currently producing oil and gas at Winchester's Nolan County operations. Waterflooding is a secondary recovery technique which injects water into an oil reservoir in a downdip position. The water repressurises the field and provides energy to move unswept oil updip to crestal oil well producers.

Secondary oil recovery is extremely common, particularly in the US. In any given oil field, primary production accounts for the removal of 10-20% of all original oil in place (OOIP), secondary recovery (waterflooding) accounts for a further 10-20% recovery of OOIP whilst further oil is often recovered through tertiary recovery (enhanced oil recovery such as CO 2 injection)2.