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Kazakhstan-focussed exploration and development company Jupiter Energy (LSE:JPRL) has successfully found oil fifth in a row after drilling another exploration well in its 100% controlled licence in the Central Asian country, two months before the exploration licence expires at the end of 2012.
In a statement today, Jupiter said J-55 well, the first of the two wells to be drilled in the southern part of the licence, encountered “good levels of oil saturation and porosity” similar to the previous four wells drilled.
The independent analysis confirmed 112 metres of gross reservoir and 60 metres of net pay, which gives the company confidence the target contains about 10 million barrels of “potential resources”.
Over half a million shares of the firm were traded by 2:30 PM GMT and raised the share price by 8.8% to 40 pence, trading on the Alternative Investment Market.
Towards Becoming an Oil Producer
Following the commercial discovery, J-55 well is to undergo flow testing for 90 days, after which it will be placed on trial production while simultaneously drilling J-58 well also in the south of the licence as part of the firm’s 2012 two-well programme.
The two other commercial discovery wells, J-50 and J-52, are both producing oil with about 27,806 barrels sold domestically in Kazakhstan within the 2011-2012 fiscal year, while wells J-51 and J-53 are waiting for their trial production licences.
An application for extension of operatorship in the firm’s 123-square kilometre Block 31 acreage has already been submitted and awaiting formal approval from the government.
Last August 2012, the company has secured a contract with a local oil trader for the sale of about 14,000 barrels of oil at a gross price of US$52 per barrel, the total amount of which has been paid in advance.
Jupiter ended the 2011-2012 financial year at a loss of Au$4.3 million, after generation revenue of just over Au$1 million, but the company said it is fully funded to commence drilling J-58, following a rights issue back in July 2012 that raised Au$11.25 million.
The company is set to provide its first quarter results this month.
