Winchester Energy Limited announced that it has received an Unprotested Master Order (UMO) from the Railroad Commission of Texas in relation to its recently acquired Varn Oil Field in Nolan County, Texas. The UMO successfully completes the permitting process by facilitating the unitisation of the Varn Oil Field tracts as well as authorising all construction, drilling and production activities associated with the planned waterflood. Preliminary work relating to road, drill pad and pit construction as well as the sourcing and installation of above-ground infrastructure has been underway since February 2022 and is nearing completion. Drilling of 11 production and injection wells will commence in August 2022. 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 (boe) 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. Winchester is the operator at Varn and will drill 11 wells (six oil and gas producers and five water injectors) to facilitate the waterflood operation. The majority of the wells are planned for the central area where the Upper and Lower Fry Sand overlap while the rest of the wells
capture oil from the more widespread Upper Fry Sand.