Kazakhstan-focussed Jupiter Energy (ASX:JPR) has released initial flow rates from the J-50 well which is located on the 100% owned and operated Block 31 and made its first sale of oil.
The J-50 well test "continues with extended flow on 10mm choke at 220 barrels of per day (bopd)." The Company has made its first sale of oil produced from its J-50 well.
David Thorpe, managing director said this was a "major milestone for the company having achieved our first revenue objective with the successful off take of 183bbl of Block 31, Middle Triassic crude oil from the J-50 well."
Jupiter has transformed itself from an oil explorer to an oil producer.
Produced oil is being sold at the wellhead and transported by customer road tanker from the J-50 location to a nearby terminal.
The company plans to shut in the well and run downhole pressure gauges. After this, it will open the well and conduct reservoir pressure measurements over a range of choke sizes which is a statutory requirement in Kazakhstan.
The well will then be shut in and drill rig demobilised. A 90 day production test will commence. During the production test, the operator will "stimulate the well to maximise productivity in line with offset well production rates."
Westhouse Securities issued a note this week, and said, "with additional wells planned to begin producing later this year, we believe the production outlook for Jupiter is solid," the broker added.