Winchester Energy has successfully completed drilling the JVU-5 well at its Varn waterflood project in Texas, confirming promising oil and gas shows and setting the stage for production ramp-up.
- JVU-5 well reached target depth of 4,877ft
- Oil and gas shows consistent with adjacent JVU-6 well
- Completion and production operations to commence soon
- Next drilling phase with JVU-4 water injection well planned for Q1 2026
- Existing infrastructure supports rapid well commissioning
JVU-5 Well Drilling Milestone
Winchester Energy Limited (ASX – WEL) has announced the successful completion of drilling operations for the JVU-5 production well at its Varn waterflood project in Taylor County, Texas. The well reached its total depth of 4,877 feet (1,486 meters) on 19 October 2025, marking a significant step forward in the company’s development plan for this key asset.
Logging results from the well have identified oil and gas shows in both the upper and lower Fry sands, aligning well with pre-drilling expectations and mirroring findings from the nearby JVU-6 well. This consistency reinforces the geological model underpinning the project and bodes well for the reservoir’s productive potential.
Path to Production
With drilling complete, Winchester is now moving to the next phase – well completion and bringing JVU-5 online. The company highlighted that a substantial amount of surface infrastructure; including roads, flow lines, tanks, and facilities; is already in place, enabling a swift transition from drilling to production. This readiness is crucial for maintaining momentum and optimising early cash flow from the project.
CEO Rory McGoldrick expressed satisfaction with the team’s performance, noting the safe, efficient, and budget-conscious execution of the drilling campaign. His comments underscore the operational discipline Winchester is applying to its Texas assets, which is vital in a sector often challenged by cost overruns and delays.
Looking Ahead – Water Injection and Project Scale
The Varn waterflood project is designed around a total of 10 wells; five producers and five water injectors; strategically placed to maximise recovery from the overlapping Upper and Lower Fry sands. Following JVU-5, the company plans to drill the JVU-4 water injection well in the first quarter of 2026, a critical step to support reservoir pressure and enhance oil recovery.
Winchester confirmed that all necessary planning and permitting for the remaining wells are in place, indicating a clear path forward for the project’s development timeline. The waterflood approach, which involves injecting water to maintain reservoir pressure, is a proven method to extend field life and improve overall recovery rates.
Reserves and Forward Outlook
Importantly, Winchester reiterated that there have been no material changes to the petroleum reserves and resources estimates previously reported in December 2021. This stability provides investors with continuity and confidence in the underlying asset base as the company progresses through its development phases.
While the announcement did not provide specific production volume guidance or financial impact details, the operational progress at Varn signals a positive trajectory. Investors will be watching closely for updates on production rates and reservoir performance once JVU-5 is brought online.
Bottom Line?
JVU-5’s completion marks a pivotal moment for Winchester’s Varn project, setting the stage for production growth and further drilling activity in 2026.
Questions in the middle?
- What initial production rates can be expected once JVU-5 is online?
- How will the upcoming JVU-4 water injection well impact reservoir performance?
- Are there plans to accelerate drilling beyond the current 10-well program?