Winchester joins Triangle in offshore Indonesia study with new funding arrangements

Winchester Energy Ltd ( (AU:WEL) ) has provided an announcement.

Winchester Energy has signed a binding term sheet with Triangle Energy and Triangle’s spin-out Tetragon Energy to participate in a joint study over an offshore oil and gas exploration area in Indonesian waters. Under the deal, Winchester will co-fund the study and associated performance bond in return for an option to secure a 24.5% interest in any petroleum sharing contract ultimately awarded, with Triangle to operate and hold 51% and Tetragon the remaining 24.5%.

The joint study, conducted with an Indonesian technical institute under the oversight of national regulators, will run for six to eight months at a cost of about US$300,000 and may give participants preferential standing in a future competitive PSC bid round, though it confers no exploration or production rights by itself. To finance its commitments, Winchester has arranged $500,000 in loan facilities from CEO Rory McGoldrick and related-party lender Celtic Capital, with Celtic earning a contractual interest in part of Winchester’s potential PSC stake, and the board asserting these funding arrangements are on arm’s length terms and subject to any required ASX approvals.

The most recent analyst rating on (AU:WEL) stock is a Sell with a A$0.01 price target. To see the full list of analyst forecasts on Winchester Energy Ltd stock, see the AU:WEL Stock Forecast page.

More about Winchester Energy Ltd

Winchester Energy Limited is an Australia-based oil and gas company listed on the ASX under the ticker WEL. The company focuses on upstream exploration and production opportunities and is now extending its portfolio into offshore Indonesian prospects through collaborative ventures with industry partners.

Current Market Cap: A$4.7M

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