Delays or Success? Winchester’s Varn Project Faces Critical JVU-5 Drilling Phase
Winchester Energy has commenced drilling the JVU-5 well in its Varn waterflood project in Texas, marking a key step in unlocking over one million barrels of oil equivalent reserves. The operation underscores the company’s commitment to expanding its US production footprint.
- Drilling of JVU-5 production well started on 7 October 2025
- Winchester holds 70% working interest and operates the Varn joint venture
- JVU-5 well planned to reach 4,900 feet depth with a 5-day drilling schedule
- Varn project includes 10 wells targeting proven and probable reserves of 1.07 million barrels of oil equivalent
- Existing infrastructure in place to enable rapid production post-drilling
Drilling Commences on JVU-5 Well
Winchester Energy Limited (ASX, WEL) has officially begun drilling the JVU-5 production well as part of its Varn waterflood project located in Taylor County, Texas. The operation started on 7 October 2025, with the company acting as operator and holding a 70% working interest in the joint venture. This marks the second production well in the project, following the earlier JVU-6 well, reinforcing Winchester’s active development strategy in its US assets.
Project Scope and Operational Details
The JVU-5 well is planned to reach a total depth of approximately 4,900 feet (1,164 meters), with drilling expected to take around five days and the rig scheduled to remain on site for seven days. Upon reaching the target depth, logging operations are anticipated to conclude by mid-October, after which completion activities will commence to bring the well online. This timeline reflects a streamlined approach, leveraging existing infrastructure such as roads, flow lines, tanks, and facilities already established at the Varn Oil Field.
Strategic Importance of the Varn Waterflood Project
The Varn waterflood project encompasses a total of 10 wells, split evenly between oil and gas producers and water injectors. The waterflood technique aims to enhance oil recovery from the Fry Sands formation, a sub-unit of the Strawn Sands, by injecting water to maintain reservoir pressure and improve extraction efficiency. The project area contains proven and probable reserves estimated at over 1 million barrels of oil equivalent, including nearly one million barrels of oil and associated gas volumes.
Commitment to US Operations and Future Outlook
Winchester’s CEO, Rory McGoldrick, expressed enthusiasm about the drilling progress, highlighting the company’s dedication to realising value from its US operations. With all necessary planning and permits in place for the remaining wells, the company is positioned to accelerate production growth as each well is drilled and completed. The ongoing development of the Varn project is a critical component of Winchester’s broader strategy to expand its footprint and capitalise on existing reserves efficiently.
Maintaining Reserve Confidence
Importantly, Winchester confirmed that there have been no material changes to the previously reported petroleum reserves and resources as outlined in its December 2021 announcement. This continuity provides investors with confidence that the underlying asset base remains robust as the company advances its operational milestones.
Bottom Line?
As drilling progresses, all eyes will be on production ramp-up and how swiftly Winchester can convert its Texas reserves into cash flow.
Questions in the middle?
- Will the JVU-5 well meet its planned depth and production targets on schedule?
- How will the waterflood strategy impact overall recovery rates and project economics?
- What are the timelines and capital requirements for drilling the remaining wells in the Varn project?