Winchester to raise $6.4m

US-focused Winchester Energy has received commitments to raise $6.4 million through a share placement to fast-track oil exploration and production activities at its Permian Basin project in Texas.

The company will issue 128 million shares at 5 cents per share, with Gleneagle Securities and CPS Capital Group acting as lead managers to the placement.

Winchester said it would now maintain an ongoing exploration program at the basin, with a focus on lowering risk development oil wells in the Mustang field and new offset wells on the Lightening prospect, as well as drilling additional prospects.

Managing director of Winchester Neville Henry said the company looks forward to putting the capital to work over the coming months.

“Following recent drilling success at the Mustang oil field and the exciting new Lightning prospect discovery, Winchester has recorded increases in oil production to an average of 506 gross barrels of oil per day… resulting in a significant increase in revenue,” Mr Henry said.

The company said its gross oil production since April had increased from 100 barrels per day to its current levels of over 500.

Shares in Winchester Energy were up 8.93 per cent to trade at 6.1 cents per share, as at 3:50pm AEDT.