JVU-5 Well Produces 25 Barrels Per Day in First Week at Varn Oil Field
Winchester Energy has commenced production from its Varn JVU-5 well in Texas, marking a significant step in its waterflood project with an initial oil output of 25 barrels per day.
- JVU-5 well begins production at Varn Oil Field, Texas
- Initial oil rate averages 25 barrels per day over first week
- Water production recorded at 74 barrels per day initially
- JVU-5 is second producer in planned 10-well waterflood project
- Next drilling phase targets JVU-4 water injection well in Q1 2026
Production Milestone Achieved
Winchester Energy Limited (ASX – WEL) has officially brought its JVU-5 well online at the Varn Oil Field in Taylor County, Texas. This development represents the second active oil producer within the company’s ongoing waterflood project, a strategic initiative designed to enhance recovery from the Upper and Lower Fry Sand reservoirs.
The initial production figures from the first full week of operation show an average oil output of 25 barrels per day, accompanied by a water production rate of 74 barrels per day. These early results align closely with the adjacent JVU-6 well, which currently produces around 18 barrels per day, suggesting consistent reservoir performance across the field.
Waterflood Project Progress and Strategy
The Varn waterflood project is structured around a total of 10 wells; five dedicated to oil and gas production and five designed as water injectors to maintain reservoir pressure and improve oil recovery. Most of these wells are concentrated in the central area where the Upper and Lower Fry Sand formations overlap, while others target the broader Upper Fry Sand zone.
Looking ahead, Winchester plans to drill the JVU-4 water injection well in the first quarter of 2026, a critical step to sustain and potentially boost production rates as the waterflood operation matures. The company’s methodical approach reflects a commitment to maximizing resource extraction while managing reservoir dynamics carefully.
Operational Confidence and Forward Outlook
CEO Rory McGoldrick expressed satisfaction with the team’s efforts, highlighting the successful transition from planning to production. While initial production rates are promising, the company acknowledges that output is expected to decline as the well stabilizes; a typical pattern in early-stage production wells.
Importantly, Winchester confirmed there have been no material changes to its previously reported petroleum reserves and resources, maintaining confidence in the underlying asset base. The company also reiterated the usual caution around forward-looking statements, noting the inherent uncertainties in oil and gas operations.
Overall, the commencement of production at JVU-5 marks a tangible advancement in Winchester’s operational timeline, setting the stage for further development and potential value creation as the waterflood project progresses.
Bottom Line?
JVU-5’s production start is a key step, but sustaining and growing output will be the real test for Winchester’s Varn project.
Questions in the middle?
- How will production rates evolve as the JVU-5 well stabilizes over the coming months?
- What impact will the upcoming JVU-4 water injection well have on reservoir pressure and oil recovery?
- Are there plans to accelerate drilling beyond the initial 10-well waterflood program?