www.jupiterenergy.com
Jupiter Energy Limited (ASX: JPR & AIM: JPRL) is an oil exploration and production company, listed on both the Australian Stock Exchange (ASX) and London AIM (AIM), with acreage in Kazakhstan. Its initial purchase was 100% of an exploration permit (known as Block 31) in the Mangistau Basin. Block 31 is currently 123 km2 in size after a 2011 extension of 59 km2. The entire permit covers an area of proven oil production.
The Block 31 permit has a 10 year exploration licence (initial 6 years + two possible extensions of 2 years each) as well as a 25 year production licence. The initial 6 year exploration period runs until December 2012 and the Company has recently submitted an application for this period to be extended to December 2014.
The Company has its operations based in the port city of Aktau, which is located approximately 80km from Block 31.
The Company has an experienced Board and Management team with excellent in country experience and a proven track record in developing organisations from early phase to proven revenue generation.
Jupiter Energy finds oil in primary target of J-53 well - UPDATE
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Shares in Jupiter Energy (LON:JPRL, ASX:JPR) soared in response to the news that initial data from its J-53 well in the Block 31 permit in Kazakhstan’s Mangistau Basin shows it encountered hydrocarbons in the main target formation.
The well reached total depth of 3,113 metres at the weekend. The group has now drilled four exploration wells on the block. The three previous wells have all been commercial discoveries.
The stock soared after trade opened in London today. At 9.45 am, it was up 28.4 percent at 47.5 pence.
The initial analysis confirmed approximately 87 metres of gross and 56 metres of net pay at the Middle Triassic carbonate reservoir unit, the primary reservoir objective in the well. The reservoir appears to be oil on rock and well above the already identified oil water contact in the Akkar East field.
The J-53 well is the first of two 2012 commitment wells on Block 31. It is now is being prepared to run production casing and cement. Operational progress and geological results were consistent with the company's expectations.
The open hole logs indicate good levels of oil saturation and porosity, similar to the proved producing zones in J-50, J-51 and J-52.
After the drilling of the J-50 and J-52 wells, the 2P reserves were estimated at 24.2 million barrels of oil and a new independent reserves report will now be prepared to include the results of all four wells drilled on Block 31: J-50, J-52, J-51 and J-53. The next reserves report should be published during the second quarter of 2012.
The Mid Triassic carbonate reservoir unit was successfully flow tested in J-50 and J-51 and J-52 wells and this will be the initial focus of completion and testing operations.
Once the casing has been run and the well is perforated, J-53 will be stimulated and flow tested for up to a maximum of ninety day. It will then be shut in and Jupiter will submit an application for a trial production licence.
The company plans to release its quarterly report in the next week and this will provide an update on in-country operations.
Broker finnCap commented on the news in its ‘First Thoughts’ report. Analyst Will Arnstein noted that, pre-drill, Jupiter estimated that the J-53 well was targeting 9.9 million barrels of prospective resources, which will now be de-risked to 75 per cent, thus adding 10.3 pence a share to finnCap’s 131.2 pence total net asset value.
