Block 31
Jupiter Energy Limited holds a 100% interest in an exploration permit (Block 31) located in the Mangistau Basin in South West Kazakhstan. The permit currently covers an area of 123 km2 with the the permit having recently being extended from 64 km2 to 123 km2. Block 31 is located on trend with three existing producing oil fields that have potential resource in excess of 56 million barrels of oil (mmbbls). The prospective permit is located within the Zhetybai-Uzen step, adjacent to the Akkar North and North West Zhetybai oilfields. Government records indicate that there has already been production of approximately 6 billion barrels of oil within this region. The Block has had 3D seismic shot over 64 km2 and 3D seismic has also been acquired over the new 59 km2 extension. The Company has completed its first three wells on the permit (J-50, J-51 and J-52). All were commercial discoveries.
Both the J-50 and J-52 wells have received approval from the Kazakh Central Development Committee for a Trial Production Licence (TPL) and these wells are expected to go onto production before the end of 2011.
Drilling of the 2011 Commitment well (J-51) was completed during September 2011 and was perforated and stimulated in preparation for up to a maximum of 3 months of flow testing. Initial flow rates have been established and a stabilised flow rate will be announced during December 2011. Oil produced during this period will be sold into the domestic market.
The first of the Company's 2012 Commitment wells (J-53) spudded on 25 November 2011 and is expected to be completed in early 2012. The J-53 well is located to the southeast of J-51 and will test a structure that may contain up to 10 million barrels of potential resource.
Regular updates on the progress being made with the J-50, J-51, J-52 and J-53 wells will be released via ASX announcements that can be accessed through the Newsroom link.
Reasons for Success
JPR believes it has the following key elements that will ensure it becomes a successful oil producer in one of the most prospective oil producing countries in the world:
- An experienced and well connected board and management.
- A proven local team with access to skilled Kazakh human resources/companies.
- A strong cornerstone investor with a proven track record in assisting in the development of emerging exploration and production companies.
- 100% ownership of an excellent piece of acreage in the oil rich Mangistau Basin, SW Kazakhstan. A recent independent review of the Triassic structure by Senergy Limited confirmed that the permit contains ~ 24 mmbbls 2P reserves. Further reviews will be completed post the drilling of the 2011 and 2012 commitment wells.
- Commercial discoveries with its first three wells (J-50, J-51 and J-52). J-50 and J-52 have been granted Trial Production Licences. J-51 is currently on its 3 month production testing phase.
- Access to the export oil market through the nearby port city of Aktau - thereby giving the Company the opportunity to monetise oil discoveries at the best possible prices.