Australia's Jupiter Energy reported Thursday that the Kazakhstan Government's state reserves committee has approved C1 and C2 reserves of 37 million barrels for the four wells drilled by Jupiter on Block 31.
Jupiter previously reported, on Jan. 25 2012, that independent consultants had judged the J-53 well's Mid Triassic reservoir to contain 184 feet (56 meters) of net pay.
The approval of the reserves figure demonstrates "the significant resource opportunity that exists on the block," commented Will Arnstein, oil analyst of London-based investment bank FinnCap.
In addition, the government has also granted Jupiter a two-year extension on its exploration permit for Block 31 – an oil block within the country's Mangistau Basin. The company had applied for the extension to the block's exploration license in March 2012.
The license extension means that Jupiter can continue exploring on Block 31 until at least December 2014. It is expected that the second two-year extension will be applied for in 2014.
Jupiter said that the forward plan for J-53 is to apply for permission for an extension to the already completed three-month testing period, so that a workover of J-53 well can be undertaken and the well flow-tested for a reasonable period of time. Upon completion of the test phase, the J-53 well will be shut in and an application will be submitted to the Kazakhstan Government for the well to be put onto a trial production license.
Jupiter added that an unstable flow regime, with only periods of intermittent production that recovered only oil and water, will be tackled through the isolation of the well's water zone from its oil zones. This work is expected to be undertaken in 3Q 2012.
The J-53 well is the company's fourth exploration well and the first of its two 2012 commitment wells on Block 31. The well is located 4.5 miles (2.8 kilometers) southeast of the J-52 well and increases the known areal extent of the Akkar East field.
To date, Jupiter has approved reserves for the areas associated with the J-50, 51, 52 and 53 wells from the Kazakhstan State Reserves Committee.
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