Jupiter Energy (LON:JPRL) has said that independent reserve audits have confirmed the prospectivity of the Block 31 asset.
The company also says it will shortly outline a more detailed plan of its future work plans and funding arrangements.
According to one audit, a State Reserves Report, approved to Kazakh standard and based on the Russia reserves system, Block 31 has 102.5mln barrels of C1 + C2 reserves, comprising 17mln barrels of the higher confidence C1 reserves and 85.5mln barrels of C2.
Meanwhile, a competent person's report (CPR), prepared by McDaniel & Associates, to Western standards, estimates the assets contains 9.7mln barrels of proven reserves (1P), 19.2mln barrels of proven and probable reserves (2P) and 28.7mln barrels of proved, probable and possible (3P) reserves.
The CPR valued the 2P reserves at around US$300mln before tax, based on a per barrel value of US$15.9.
Jupiter explains that Kazakh reserves reports are based on the analysis of geological attributes and are integral in obtaining necessary approvals to develop either trial or full production wells.
Reserves estimated in CPRs, however, are used by banks and other financiers and are rooted in proven production statistics.
finnCap analyst Will Arnstein, in a note, said: “The updated reserves report paints a slightly confusing picture, but importantly underlines our view that Jupiter is significantly undervalued.
“The results demonstrate the significant upside potential on the block and the need for further appraisal drilling and this should come as no surprise to investors.”