Kazakhstan-focused Jupiter Energy reported Tuesday that expects to an updated reserves report early in the second quarter of this year after it finishes compiling data from its J-51 and J-53 wells on Block 31 – an exploration permit within the country's oil-rich Mangistau Basin.
The Australian firm said that the J-51 well, currently undergoing production testing, is producing 600 barrels of oil per day at a stabilized rate. Meanwhile, oil from J-51 continues to be sold into the local market at a price of approximately $42 per barrel at the well head, with all transport and logistics costs borne by the buyer.
To date, oil produced by J-51 for sale total approximately 24,000 barrels. The company expects to complete its 90-day production test on Feb. 4 2012 before temporarily shutting the well while the application for a trial production license is sought.
After Jupiter reported on Jan. 25 2012 that independent consultants had judged the well J-53's Mid Triassic reservoir to contain 184 feet (56 meters) of net pay, the well will now be stimulated and flow tested for up to 90 days before also being temporarily shut in while a TPL is sought.
"We continue to meet the operational objectives required to progress the company into its next phase – that of becoming an oil producer," said Jupiter CEO Geoff Gander. "The early results from the J-53 well are encouraging and we look forward to achieving trial production from J-50 and J-52 in the near term. The interpretation of the 3D seismic over the southern extension area has identified several new prospects on Block 31 and we are working towards selecting the final drilling location of the second 2012 commitment well."
Commenting on Jupiter's update, oil analysts at investment bank Westhouse Securities said: "Looking ahead, we expect the revised reserves report, due in Q2 2012, to include a revision up to current 2P reserves of 24.2mmbbl and a marked increase in production when J-50 and J-52 come on line. The cash flow associated with this production will help fund the group's remaining 2012 work obligation, the J-55 well."
Jupiter's shares are now traded in the UK as well as in Australia after the firm joined London's Alternative Investment Market in November.
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