LONDON (Alliance News) - Jupiter Energy Limited Wednesday said independent reviews confirmed significant oil reserves in its main exploration permit area in western Kazakhstan.
Jupiter Energy, an oil exploration and production company listed on both the Australian Stock Exchange and London's Alternative Investment Market, said the independent review by independent Kazakh reserves institute, Reservoir Evaluation Services LLC, confirmed approximately 102.5 million barrels are held in the area, known as Block 31.
Jupiter Energy said it is now waiting for approval of the reserve estimates by the Kazakh authorities. Jupiter said independent reviews are vital in getting approval from the Kazakh authorities.
The independent review was carried out under approved Kazakh standards, developed from the Russian system, Jupiter Energy said, and the approval process by the authorities is expected to take three months.
At the same time, a separate competent persons report, vital to securing funding from banks and other financing parties to develop the Block 31 permit, found there are 9.7 million barrels of proven resources in the block's mid-Triassic horizon, 19.2 million of proven and probable, and 28.7 million of proven, probable and possible barrels.
McDaniel & Associates, which carried out the CPR, said the net present value of the reserves could be as much as USD15.9 billion before income tax.
The Akhar East oilfield, meanwhile, was estimated to hold 41.2 million barrels, up 11% on June 2012 estimates. Approval of Akkar East is yet to be obtained but is the planned next step towards obtaining development status for the field as a whole. Meanwhile, trial production licences for three wells in the so-called Southern Extension, which contains approximately 61.2 million barrels, is being applied for.
The company said its immediate plans are to further evaluate several of its wells' viability, with a view to establishing commercial production.
Jupiter Energy shares were Wednesday quoted at 31.00 pence, down 2 pence, or 6.1%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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