(An item published July 23 misstated the material produced. The correct version follows.)
LONDON (Alliance News) - Jupiter Energy Ltd Wednesday said its production rates fell in its fourth quarter due to gradual wear in equipment but its full-year oil sales revenues increased 34% in its full year compared to the last.
In a statement, the oil and exploration company, which focuses on developing its onshore assets in western Kazakhstan, said oil sales in the twelve months ended June 30 totalled 247,500 barrels, generating domestic oil sales of roughly USD7.9 million, this compares to production of 194,300 barrels and revenues of roughly USD5.9 million the previous year.
However, the company noted that its fourth quarter production fell 15% to 62,460 barrels when compared with 73,000 in the same period during the previous year.
Jupiter Energy said its production rates fell as production from its J-50 well saw a gradual reduction due to wear at its current submersible pump, with a new pump planned for installation in August.
The news comes after the company announced a fall in its Block 31 reserves earlier in July. It said at the time that C1+C2 Block 31 reserves have fallen to about 27.0 million barrels of oil, from 61.2 million and C2 reserves fell to about 23.0 million barrels of oil, from 58.9 million, more than offsetting a rise in C1 reserves to 4.0 million barrels, from 2.3 million.
It said that the decrease in C2 reserves is due to a need for further testing of the existing J-55, J-58 and J-59 wells during the trial production phase as well as further appraisal drilling in the areas between the existing West Zhetybai wells.
However, at the time Jupiter Energy said that received Kazakh state approval of the preliminary Zhetybai reserves is a key step in the process of obtaining trial production licences for the J-55, 58 and 59 wells.
On Wednesday, the company said that once it has funding in place, it plans to drill at least two additional wells at the site but in the meantime it expects to continue sales from its J-50,51 and 52 wells.
Jupiter Energy shares were up 4.6% to 23.00 pence on Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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