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 encouraged by progress at Block 31, 3D data identifies several prospects
Jupiter Energy (LON:JPRL, ASX:JPR) is on track to transition into an oil producer after making “encouraging” progress at its flagship Block 31 in Kazakhstan in the final quarter of 2011.
At the moment, Jupiter is busy with the interpretation of 3D seismic data from the southern extension of Block 31, which will be used to determine the location of J-55, the second commitment well of 2012.
The company reported that the data has already helped identify several potential prospects.
The drilling of the previous well, J-53, was completed earlier in this quarter with logging results indicating a 56 metre net pay in the Mid Triassic reservoir. Jupiter plans to stimulate and flow test the well for up to ninety days and then apply for a trial production license.
The Kazakh government has already granted trial production licenses for the other two wells on the field, J-50 and J-52. Jupiter still needs to complete a number of operational steps to bring the wells into production.
It was initially planned that the two wells would go online before the end of 2011, however, personnel changes within the government have delayed the final sign off on emissions permits.
Today, Jupiter said it is confident that the sign offs will be finalised.
“We continue to meet the operational objectives required to progress the company into its next phase - that of becoming an oil producer,” said chief executive of Jupiter Energy Geoff Gander.
“The early results from the J-53 well are encouraging and we look forward to achieving trial production from J-50 and J-52 in the near term.”
In the meantime, well J-51 is currently producing at an average daily rate of 600 barrels of oil, which is sold into the domestic market at a price of US$42 per barrel. The well has so far produced a total 24,000 barrels of oil.
In the next quarter, Jupiter expects to publish the next reserves report, which will include the results of all four wells drilled on the block.
The current proved and probable reserve estimate, which was based on the first two discoveries, stands at 24.2 million barrels.
Investors welcomed the report as shares in Jupiter rose two percent to trade at 43.25 pence in early deals, valuing the company at £50.1 million.
