Winchester Energy Limited provided White Hat 38#1 and 38#2 wells update. Both White Hat 38#1 and 38#2 wells intersected log-interpreted pay zones in the target Ellenburger Formation with comparable thickness and character to the existing five producing wells already drilled by Winchester and the Operator, Carl E Gungoll Exploration LLC (CEGX), in the White Hat oil discovery. The 38#1 well recovered oil at low rates of 70-100 barrels of total fluid per day at 5%-20% oil cut during swabbing from two separate zones of the Ellenburger Formation. The 38#1 well was then fracture stimulated in an attempt to improve the production rate however pump production only recovered water at high rates (300-400 bwpd). Micro seismic was used by Winchester to monitor the frack from the White Hat 38#1 well and that indicated the frack penetrated downwards into a deeper water bearing zone, near the base of the Ellenburger Formation. Pumping of White Hat 38#1 continues and CEGX is currently attempting to pump off the water in order to attempt to eventually bring the oil in. However no oil has been recovered as yet. The White Hat 38#2 well swabbed oil from three separate intervals in the Ellenburger Formation, with the upper interval producing 103 bopd (testing in daylight hours). After a pump was installed, the White Hat 38#2 well had high initial production rates but also emulsion problems. Oil production has now stabilized to between 30 and 40 bopd with only minor water production.