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Jupiter Energy production edges ahead, focused on financing

Jupiter Energy production edges ahead, focused on financing

Production from Jupiter Energy’s (LON:JPRL) Block 31 in Kazakstan edged higher in its latest quarter though a financing package for development of the Akkar East field remains the focus.

The group pumped 67,800 barrels of oil from trial production in the three months to March, generating domestic oil sales of $US2.15 mln at an average price of $US32 per barrel at the well head.  Production was 64,000 barrels in the same period a year ago.

Jupiter has now produced 179,700 barrels (141,000) for the nine months of the year so far, generating domestic oil sales of $US5.87mln at an average price of $US33 per barrel at the well head. 

The outlook for oil sales in the final quarter of the 2013/14 financial year is for continued sales from wells J-50, 51, 52 and, potentially, some contribution from well J-53.

Jupiter added that a recent devaluation of the Kazakh Tenge by 20% will see sale prices drop to US$27 per barrel on average in the current quarter, but they are expected to recover to US$33.bbl.

It is also ready to carry out additional testing on the J-59 well; but this been delayed due to funding constraints though Jupiter hopes work will commence during the current quarter. Once funding is in place, Jupiter will  carry out testing of the Jurassic zone identified at J-59.

An application for a Trial Production Licence for the well will be submitted once the State Authorities have approved its associated reserves. 

Post this work, and assuming the funding is in place, the company also expects to commence drilling of the J-54 exploration well to the north of the producing East Akkar field. The prospect is believed to be a separate field.

Net cash at end March was A$1.67mln.

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