5 Oct 2012 07:00
05 October 2012
Jupiter Energy Limited ("Jupiter" or the "Company")
J-55 DRILLING UPDATE
KEY POINTS:
·; Well J-55 has reached its final total depth; mud logs, core and open hole wireline logs indicate hydrocarbons in the Mid Triassic horizon
·; Initial analysis indicates 112m of gross reservoir and approximately 60m net pay in the Mid Triassic carbonate reservoir unit. This is similar to that of Jupiter's already discovered Akkar East oilfield
·; Well J-55 is currently running production casing to allow for a period of up to ninety days of flow testing from the Mid Triassic section
·; The J-55 structure is mapped as a separate accumulation to that of East Akkar
The Board of Jupiter, the Kazakhstan-focused oil exploration and production company, quoted on AIM ("JPRL") and ASX ("JPR"), is pleased to provide shareholders with the following J-55 drilling update.
The J-55 well is the Company's fifth exploration well and the second of its two 2012 commitment wells on Block 31, Jupiter's 100 per cent owned permit in onshore Kazakhstan just east of the city of Aktau and the Caspian Sea. The well is located 5.7 km southeast of the J-53 well and is the first well that the Company has drilled on the southern area extension. This area was granted to the Company in 2011 and is located to the south of Jupiter's already discovered Akkar East oil accumulation.
The J-55 well took a total of 55 days to drill and reached a total depth of 3,400 m on 29 September 2012. Open hole logs have since been analysed and production casing is now being run in preparation for ninety day production testing period.
Hydrocarbon shows while drilling, including a core in the reservoir zone, and subsequent open hole wireline logs all indicated the presence of hydrocarbons in the Triassic reservoir. The open hole logs indicate good levels of oil saturation and porosity, similar to the proved producing zones in the J-50, J-51, J-52 and J-53 wells on the Akkar East field.
Analysis by independent consulting firm Reservoir Evaluation Services LLC ("RES") has confirmed some 112m of gross reservoir and approximately 60m of net pay in the Middle Triassic carbonate reservoir unit, the primary reservoir objective in the well. The reservoir is located on a separate structure to the Akkar East field. The geological indications are consistent with the Company's pre-drill expectations that the prospect being targeted by the J-55 well may contain up to 10 million barrels (mmbls) of potential resources.
Forward Plan (J-55)
The forward plan, after completing production casing, is to stimulate and flow test the J-55 well for up to a maximum of 90 days during which time flow rates and reservoir pressures will be measured for various choke sizes and fluid samples collected for analysis. The well will then be shut in and an application will be submitted to the relevant regulatory authorities for the well to be put onto a Trial Production Licence.
The mobilisation of the workover rig and testing equipment, as well as the need to receive all the required government approvals, may mean it will take two to three weeks before the Company can commence the initial testing programme.
Further updates on progress with the J-55 well will be provided to shareholders in due course.
Forward Plan (Drilling of J-58 Well)
The ZJ-40 drilling rig will now be moved to the location of the J-58 well and it is expected that this well will spud before the end of October. The J-58 well location is mapped as up-dip to J-55 and 3.8km further to the southeast. Mapping is not definitive as to whether the J-58 structure is separate to, or an extension of, the J-55 structure. The prospectivity of J-58 has been enhanced by the results of J-55 and has the potential to add a further 10 mmbls of resource to the area. Further updates on the J-58 well will be provided to shareholders in due course.
Operations Update
The Company is scheduled to release its next Quarterly Report during October and this will provide an update on in-country operations.
ENDS
Corporate Enquiries:
Jupiter Energy (+61 89 322 8222)
Geoff Gander (geoff@jupiterenergy.com)
finnCap Ltd: +44 (0) 20 7220 0500
Matt Goode/Christopher Raggett (Corporate Finance)
Simon Johnson (Corporate Broking)
GMP Securities (Europe) LLP +44 (0) 20 7647 2800
James Pope (Corporate Finance)
Chris Beltgens (Corporate Finance)
Media Enquiries:
Allerton Communications: +44 (0) 20 3137 2500
Peter Curtain: (peter.curtain@allertoncomms.co.uk)
Competent Persons Statements:
In accordance with the guidelines of the AIM Market of the London Stock Exchange, Keith Martens, BSc Geology and Geophysics, with over 35 years' oil & gas industry experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who has reviewed and approved the technical information contained in this announcement.
Independent Analysis:
The information in this announcement which relates to the Mid Triassic prospectivity is based on information compiled by Reservoir Evaluation Services LLP ("RES"), a Kazakh based oil & gas consulting company that specialises in oil & gas reserve estimations. RES has sufficient experience which is relevant to oil & gas reserve estimation and to the specific permit in Kazakhstan to qualify as competent to verify the information pertaining to the Mid Triassic prospectivity. RES has given and not withdrawn its written consent to the inclusion of the Mid Triassic prospectivity figures in the form and context in which they appear in this announcement. RES has no interest in the Company.
About the Company:
Jupiter Energy Limited is an oil exploration and production company, quoted on both the AIM and ASX markets. The Company is focused on developing its onshore assets in western Kazakhstan. In 2008 the Company acquired 100 per cent of the Block 31 permit, located in the oil-rich Mangistau Basin, close to the port city of Aktau.
Jupiter has a proven in-country management team, led by an experienced, international Board, together possessing the skills, knowledge, network and attention to detail needed to operate successfully in Kazakhstan. The forward plan will see Jupiter develop a group production facility on Block 31 to process, store and export oil. This surface infrastructure is a key element in moving to long-term production and the achievement of self-funding for further development of Block 31.