Jupiter Energy Commences Trial Production

PUBLISHED: 24 Apr 2012 @ 14:48 | Comments (0) | More info about Kenneth G. Mondero

Oil exploration and development company Jupiter Energy (LSE:JPRL) disclosed they have commenced trial production on two of its wells in their sole asset in Kazakhstan, whilst preparing trial licences for the other two wells.

Domestic Production

J-50 and J-52 wells are expected to produce 600 barrels of oil per day (bopd), with the oil to be transported to a nearby third party storage facility.

The oil produced is to be sold domestically in Kazakhstan, with Jupiter Energy expecting a full production to be able to export their product sooner than the three-year trial production licences that allow for the current production.

“Jupiter is finalising sales agreements with at least two local traders and expects to announce details of these contracts shortly,” Jupiter Energy said in a statement.

Meanwhile, J-51 and J-53 wells are being prepared for trial production, which is pending approval production licences by the Kazakhstan’s Ministry of Oil & Gas.

Becoming a Production Company

Jupiter Energy is now heading towards becoming a production company, following successes in all four wells.

A fifth and final well will be drilled within the current year, as part of the 2012 drilling programme, in the extended acreage granted by the Government of Kazakhstan.

Jupiter Energy is also seeking an extension of its six-year exploration licence in the area, which is soon to expire in December 2012, to make way for more exploration and development wells.

The company acknowledged they would need fresh capital to fund their continued undertakings in the block. Jupiter Energy is still operating at a loss of £2 million for the six months ending in December 2011.

Company Spotlight

Jupiter Energy has 100% interest in the Block 31 Exploration Permit covering an area of about 123 km2 said to contain about 56 million barrels of oil.

Quoted on both the Australian Stock Exchange and the Alternative Investment Market, shares of Jupiter Energy were up 8% to 40 pence at midday in London trading.

References
↑ Jupiter Energy Block 31 Licence

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Jupiter Energy’s Fifth Well Strikes Oil by Kenneth G. Mondero