Jupiter Energy Share Discussion Threads

[hiddendepths] 31/10/2012 08:00

Still waiting..... Looking for signs of stability, as evidenced by several days of no falls without any evident buyer. Thought I'd be back in by now!

[excellance] 12/10/2012 12:47

hope you didnt wait too long...

[hiddendepths] 10/10/2012 13:29

As I thought - some of the insiders who bought ahead of the RNS and/or profit-takers are selling out.

I wonder how much longer it's going to drift. It's run up from 27p recently, possibly mainly because of the leak, but I doubt it will fall all the way back.

I'll wait a bit longer though, I think.

[hiddendepths] 08/10/2012 21:11

I sold on the rise as I was suspicious of the quality of pre-announcement buying and thought it would drop back. Looking to buy back in though because the story is still improving and the rating hardly demanding.

Certainly not too late kiwi! Pretty solid long term play - unless oil prices take a big hit!

[excellance] 08/10/2012 10:40

"The Company is scheduled to release its next Quarterly Report during October and this will provide an update on in-country operations."

[excellance] 08/10/2012 10:30

"Mapping is not definitive as to whether the J-58 structure is separate to, or an extension of, the J-55 structure. The prospectivity of J-58 has been enhanced by the results of J-55..."

[excellance] 08/10/2012 10:08

we should see a solid recovery from here, 50p target before November.

[lucky_punter] 08/10/2012 07:43

Jupiter Energy (LON:JPRL, ASX:JPR) shares soared today after encouraging initial analysis of the J-55 well in Kazakhstan.
The company said the work suggests a 112 metre gross reservoir and 60 metres of net pay oil in the mid-Triassic horizon.

[excellance] 06/10/2012 12:15

dont want to put a spanner in the works, but depletion is a consideration with these small oil fields... a fairly rapid depletion rate of near 10% pa in most cases means that the company needs to continually drill new wells and expand into new areas in order to maintain production numbers, however, that is a few years away yet as full production will not be for at least another 18 months from now and there will be many more wells drilled... 20 or 30 production wells over the next 5 years each producing 500 bopd and fairly cheap to drill mean a nice healthy balance sheet and a much higher market cap...

[trulyscrumptious] 06/10/2012 08:52

Informative website, here's the link.



Interesting video interview on with the CEO who reckons 2012/13 will be transformative for the company - so far 4 out of 4 successes - as it comes into production, 2013. Each well only cost $5 million, I guess that's AUS dollars, so the total so far is only $40m for 24 million barrels.
No advice is intended here but I have these medium to long term in my ISA. Yes, this one is ISAble.

[excellance] 05/10/2012 14:51

actually JPRL also have to pay transport costs out of that at $6 per barrel, so the net figure is $46 and not $52, sorry.

[trulyscrumptious] 05/10/2012 14:00

$52 a barrel is not to be sniffed at!

[excellance] 05/10/2012 13:43

JPRL have historically been a loss making company as they go through the exploration stage and develop into a production company which they are doing now, but i wonder at what point they will be able to say they are a profit maker?

maybe they already can?

[excellance] 05/10/2012 13:41

i think they are entitled to recover their costs before they have to pay royalties or tax.

[excellance] 05/10/2012 13:39

that $52 per barrel is a net figure, that is what JPRL get.

[trulyscrumptious] 05/10/2012 13:37

I see we will get a proper update later this month but with a market cap of £63m surely this has only one way to go unless there are some gremlins that have not yet appeared. What is the government like out there? What % goes to JPRL?

[excellance] 05/10/2012 13:36

under the terms of the "test" production under the exploration license they are selling their produce on the domestic market and they are getting about $52 per barrel net after costs. Once the license is upgraded to a full 25 year production license they can sell on the global market.

[excellance] 05/10/2012 13:32

it will probably equate to 500+ bopd same as some of the other wells they have on "test" production since november last year.

has this been missed, yes, they only listed late last year and news so far has been nothing but positive, market cap only £63m

The Company announced on 16 July 2012 that an application to carry out additional perforations in the J-51 well to conduct testing of the previous untested Mid Triassic (A) horizon had been approved by the Kazakh authorities.

After the initial workover was completed, the flow rate from both the Mid Triassic (A) and (B) horizons from the well was 600 - 650 barrels of oil per day (bopd); after final cleanup of the well the stabilized flow rate, on a 9mm choke, remains at this level.

The well is to be flow tested until 15 September 2012 with co-mingled production from both the Mid Triassic (A) and (B) horizons. The oil produced until this date will continue to be sold into the domestic market. The well will then be shut in and the Trial Production Licence application for J-51 will continue to be progressed as quickly as possible.

The Company also advised on 16 July 2012 that production from the J-50 and J-52 wells had been suspended in order to carry out some modifications to bring the facilities in line with newly enacted safety legislation. This work has been completed. J-52 has resumed production and the Company is in the process of installing an electric submersible pump (ESP) at the J-50 well in order to optimise the production of oil from this well. The ESP is expected to be installed in August.

Current oil sales commitments are being met from J-51 and J-52 production which is currently running at ~1,000 bopd.

[trulyscrumptious] 05/10/2012 13:30

Spudding J-58 this month!

[trulyscrumptious] 05/10/2012 13:24

I bought a few for my ISA. Has this one been missed by the masses excellence? It seems they have another discovery announcement today and the share price is only up 4.25p!!! Doesn't flow testing signify an oil discovery, or am I missing something here?
Anyway, these seem to be the main points.
-------------------------------------------
Well J-55 has reached its final total depth; mud logs, core and open hole wireline logs indicate hydrocarbons in the Mid Triassic horizon
-- Initial analysis indicates 112m of gross reservoir and approximately 60m net pay in the Mid Triassic carbonate reservoir unit. This is similar to that of Jupiter's already discovered Akkar East oilfield
-- Well J-55 is currently running production casing to allow for a period of up to ninety days of flow testing from the Mid Triassic section

[excellance] 05/10/2012 11:58

Prospectivity
The Company believes the prospectivity of Jupiter's Block 31 continues to improve and the Board are confident that further additions to the reserves are achievable. As outline in the Forward Plan for Drilling Activity section of this report, the drilling of J-55 and J-58 during the 2nd half of calendar 2012 has the potential, assuming success, for an independent upgrade of Block 31 reserves as well as increased production.

Further exploration wells are planned for 2013

[excellance] 05/10/2012 11:56

The Company expects to appoint an independent reserves engineer to undertake a comprehensive reserves study using the standards set out within the PRMS document in early 2013, following the drilling of the next two exploration wells to be drilled on the new southern extension scheduled for 2nd half of calendar 2012 (J-55 and J-58). The 2013 reserves study will be based on the results from the J-50, J-51, J-52, J-53, J-55 and J-58 wells.

Forward Plan for Drilling Activity

Following the 2011 southern extension of Block 31, the permit size increased from ~63km2 to ~123km2 and this new acreage has provided the Company with a range of potential new exploration leads. The Company acquired 3D seismic over this new acreage before the end of 2011 and the new data was processed and interpreted and several new prospects were identified.

The 1st well to be drilled on this new area (J-55) will be the final commitment well under the current 6 year exploration licence and this well spudded in early August 2012. A 2nd exploration well is planned with the spud date expected during 4th quarter 2012.

Both these wells are fully funded after the closing of the August 2012 Rights Issue.

[excellance] 05/10/2012 11:51

Commenting in the 2012 Annual Report, Geoff Gander, Chairman/CEO said:

"I am delighted that this year has seen Jupiter successfully transition from explorer to producer. I believe that the Company has a very exciting 12 months ahead of it and continued drilling success will lay the foundation for Jupiter to grow into a significant oil producer in what is one of the most prospective oil producing countries in the world today."

[excellance] 05/10/2012 11:49

FINAL RESULTS


KEY POINTS:

· Sales of 27,806 boe into domestic market
· Revenue: A$1.1m (2011: Nil)
· Loss before tax: A$4.3m (2011: A$4.9m)
· Pro forma net cash of A$12m following completion of rights issue
· A$5m committed to drilling J-55, which spudded on 5 August 2012
· Admission to trading on AIM achieved in November 2011