LONDON (Alliance News) - Jupiter Energy Ltd said Tuesday that initial testing of well 19 in Kazakhstan indicated it has penetrated reservoirs containing hydrocarbons, although issues arising during the process have resulted in poor inflow and the operation will need to be carried out again.
It is currently looking for further funding to meet its ongoing working capital requirements, and is negotiating a debt package to ensure it can meet its financial commitments. It said that the timing of future work on well 19 is dependent on funding.
Jupiter said there was a malfunction with the perforating guns, meaning that only a limited zone of 6.3 meters was actually perforated out of the planned 47.7 meters.
It plans to re-perforate the well and carry out acid stimulation to reverse the damage caused during the drilling process in order to stimulate the well and assist oil flow. However, the timing of this work will depend on the company securing funding, and when it believes that the demand for domestic oil sales and sales price for oil has returned to a level to make trial production economically viable.
Shares in Jupiter are untraded Tuesday. It last closed at 14.00 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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