Winchester Energy Limited (ASX:WEL) Quarterly Activities Report
Operational Highlights
Winchester Energy Limited reported a working interest net revenue of AUD$566,950 (US$352,473) for the December quarter. Staff costs decreased to US$124,000, down from US$139,000 in the previous quarter. Additionally, administration expenses have also reduced to US$111,000 from US$202,000. The average production remained stable at 73 barrels of oil equivalent per day, same as the previous quarter.
Cost Reduction Initiatives
The company’s ongoing cost reduction program continues to streamline operations significantly. The new Board has implemented various measures aimed at maintaining a strong balance sheet and maximising shareholder value. The quarterly net cash from operations reported a loss of $18,000, showing improvement from the $56,000 loss reported last quarter. However, production was affected by small unscheduled outages, which led to a decrease in quarterly revenue compared to prior figures.
Future Outlook and Projects
Winchester’s Board is currently reviewing several project opportunities that align with the company’s strategic goals. These potential projects are to be evaluated technically and commercially, with a focus on those with significant targets in favourable jurisdictions.
Cash Position
As of December 31, 2024, the company’s cash balance totaled USD $511,000, with cash reserves at approximately AUD$820,000. The company continues to operate with financial discipline and focus on strengthening its position in the market.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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