Jupiter Energy Ltd. (JPR.AU), a Kazakhstan-focused oil company, Thursday said that trial production licenses for its J-51 and J-53 wells have both been approved.
MAIN FACTS:
-Both J-51 and J-53 wells can be produced under Trial
Production for a maximum of three years and during this time oil will be
sold into the domestic market.
-The Company plans to develop the required infrastructure to
move these wells from trial to full production (and therefore from
domestic to export oil sales) sooner than this maximum three year
period.
-Trial Production from the J-50 and J-52 wells continues and
it is expected aggregate production from the Block 31 field during the
first quarter of 2013 will be about 1,400 barrels of oil per day from
the J-50, 51, 52 and 53 wells.
-Following the initial production testing of J-53 during which
higher than expected water content was recorded, the well underwent a
chemical treatment that partially reduced the water production; the well
has subsequently undergone a cement squeeze to further reduce the water
influx.
-Now that the trial production license has been approved and
in field operations can recommence at the J-53 well site, the well will
now undergo an acid wash and a stabilized flow rate should be
established in the near future.
-Following the initial acid-wash stimulation of J-55, about 50
cubic meters of oil, or about 300 barrels, was recovered to surface,
however stabilized natural flow was not established.
-A review of the bottom hole pressures recorded during the
initial testing indicate that the flow characteristics of the T2B
horizon may improve following a re-perforation and a further, more
aggressive, acid stimulation.
-This work is currently being completed and the Company will update shareholders as soon as further information is available.
-All the necessary approvals have been granted to commence
production testing of the J-58 well. Initial testing will be carried out
at the T2B horizon and this will be followed by testing of the T2A
horizon and potentially the T3 horizon.
-Each production testing period is for a maximum of 90 days.
-Assuming all three horizons are tested, the J-58 well could be on production testing until September 2013.
-During December, the ZJ-40 drilling rig was moved to the
location of the J-59 well and, after receiving the necessary approvals,
the well spud on Dec. 31, 2012.
-The well is anticipated to take approximately 60 days from
spud through to running production casing and temporarily suspending the
well.
-The J-59 well location is mapped as up-dip to J-58 and about 4 kilometers further to the southeast.
-Mapping is not definitive as to whether the J-59 structure is separate to, or an extension of, the J-58 structure.
-The prospectivity of J-59 has been enhanced by the results of
the logs from J-58 and the Company believes it has the potential to add
a further 10 million barrels of oil of resource to the area.
-Shares in London closed Wednesday at 44.0 pence.