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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.
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.
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
SIGNIFICANT EVENTS AFTER THE BALANCE DATE · On 16 July 2012 the Company advised that the J-51 well had received approval to be tested at the Mid Triassic (A) horizon and after the workover was completed the co-mingled flow rate from the Mid Triassic (A) and (B) was between 600 and 650 bopd. This rate was confirmed on 30 July 2012 as having stabilized at 600 bopd on a 9mm choke. The well was shut in on 12 September 2012 after production of ~25,700 barrels of oil. · On 25 July 2012 the Company announced the closure of its 1 for 4 Rights Issue, raising $11,613,016 (before costs). There was a shortfall of 35% meaning that the joint underwriters took up additional shares. · On 01 August 2012, SNG elected to convert its $US3.45m Convertible Notes into equity. Under the terms of the Convertible Notes, the conversion price was the same price as the Rights Issue ($0.40). A total of 8,215,000 shares were issued to SNG in full satisfaction of all outstanding Convertible Notes. · On 03 August 2012, change in substantial holding notices were lodged reflecting the impact of the shortfall of the Rights Issue and the conversion of the Convertible Notes. At this date, Waterford held 29.5% of the issued shares of the Company and SNG held 19.8%. · On 06 August 2012 the Company announced that the J-55 well had spud. · On 21 August 2012 the Company announced details of further oil sales for the August/September period based on a volumes of 2000 tonnes at a price of $US365/tonne ($US52/barrel)
Commenting in the 2012 Annual Report, Geoff Gander, Chairman/CEO said: "I am delighted that this year has seen Jupiter successfully transition from explorer to producer. I believe that the Company has a very exciting 12 months ahead of it and continued drilling success will lay the foundation for Jupiter to grow into a significant oil producer in what is one of the most prospective oil producing countries in the world today."
The Board of Jupiter Energy Limited is pleased to announce its results for the twelve month period ending 30 June 2012. Jupiter's Annual Report will be posted to shareholders and will be available today on the Company's website at www.jupiterenergy.com The past 12 months have seen JPR continue to progress with its transformation from an explorer to an oil producer. The key operational events for the 2011/12 financial year were the drilling, completion and production testing of JPR's third and fourth wells (J-51 and J-53) on its Block 31 permit as well as gaining Trial Production Licences for the J-50 and J-52 wells. The prospectivity of the 100% owned Block 31 continues to improve and the drilling of two exploration wells during the 2nd half of the 2012 calendar year should continue to provide a good indication of the potential of the 59 km2 southern extension area that was granted to the Company in 2011. The Company listed on the AIM Market of the London Stock Exchange in November 2011 and the dual listing has given the Company increased exposure into the UK and European investment community where there is a developed understanding of the opportunities and investment upside available in Kazakhstan. The Company's two major shareholders, the Waterford Group and Soyuzneftegas Capital Limited (SNG) continue to show great support for the Company and the 1 for 4 Rights Issue announced in late June 2012 was jointly underwritten by them. The Rights Issue was completed subsequent to the financial period end in August 2012 and raised $A11.25m (after deducting costs). Following completion of the Rights Issue Waterford Group now hold 29.5% of the issued capital of the Company and SNG, after also converting their $US3.45m Convertible Notes in August 2012, hold 19.8%. The number of shares on issue totals 153,377,693.
FINAL RESULTS KEY POINTS: · Sales of 27,806 boe into domestic market · Revenue: A$1.1m (2011: Nil) · Loss before tax: A$4.3m (2011: A$4.9m) · Pro forma net cash of A$12m following completion of rights issue · A$5m committed to drilling J-55, which spudded on 5 August 2012 · Admission to trading on AIM achieved in November 2011
http://www.investegate.co.uk/Article.aspx?id=201209260700041225N
'With current EV of ~$73 mm, we believe the market is pricing in the company's 2P reserves of 24.2 mmb at $3.0/b. This compares to average historical acquisition metrics of $5-7/b and our valuation of $6.3/b (NPV10) from the Block 31 field model. Hence, we believe investors are getting 2P barrels at a steep discount and the remaining potential prospectivity on the block of ~100 mmb "for free". We are initiating coverage on JPR with a 78p/A$1.18 12-month target price and a BUY recommendation.' http://www.jupiterenergy.com.au/files/files/528_GMP_-_JPR_Initial_coverage_18_September_2012.pdf
Update on oil sales - August 2012 The Board of Jupiter Energy Limited, the Kazakhstan-focused oil exploration and production company, quoted on AIM ("JPRL") and ASX ("JPR"), is pleased to provide shareholders with the following update regarding oil sales. The Company has concluded an agreement with a local Kazakh oil trader for the sale of 2,000 tonnes of oil (~14,000 barrels) at a price of $US365/tonne (~$US52/barrel). This price is a reduction of some 8.25% from the last round of oil sales and reflects the softening in global oil prices since late April 2012, when the last contract was signed. Like the April contract, under this sale arrangement the cost of transportation from the field and storage at the facility is borne by Jupiter. The sale price of ~$US52/barrel adjusted for the budgeted costs of transportation and storage at ~$US6/barrel, equates to a net price of ~$US46/barrel. The total amount of $US730,000 has been prepaid and all monies received. Oil deliveries under this contract commenced on 17 August 2012 and are anticipated to be completed by 1 September 2012. The Company is currently reviewing its ongoing arrangements in terms of the methodology used for the transportation and storage of oil and any changes to the process will be reflected in the September round of oil sales.
http://www.investegate.co.uk/Article.aspx?id=201208210700043914K
CONVERSION OF CONVERTIBLE NOTE The Board of Jupiter Energy Limited, the Kazakhstan-focused oil exploration and production company, quoted on AIM ("JPRL") and ASX ("JPR"), is pleased to announce that the $US3.45m of convertible notes held by Soyuzneftegas Capital Limited ("SNG") have today been converted into ordinary shares in the capital of the Company ("Ordinary Shares"). Please find attached an Appendix 3B covering the issue of 8,215,000 Ordinary Shares which have been allotted. Pursuant to the conversion, (the "Conversion Shares") under the terms of the Convertible Notes, SNG had the right to elect to convert the notes at the same issue price as the recent Rights Issue. The conversion price of the notes was therefore $A0.40 and the issue of 8,215,000 shares satisfies the full $US3.45m due. Shareholder approval for the issue of a maximum of 8,215,000 Ordinary Shares was granted at a General Meeting held on 14 May 2012. Approval from the Kazakh government to issue 8,215,000 shares was obtained on 21 June 2012. Application will be made for the admission of the Conversion Shares to trading on both the ASX and the AIM Market of the London Stock Exchange and it is expected that admission will occur and dealing will commence in the Conversion Shares on 9 August 2012. The Conversion Shares will rank pari passu with the existing Ordinary Shares currently trading on the ASX and AIM. The total number of Ordinary Shares on issue is now 153,377,693, post the allotment of the Conversion Shares.
Jupiter Energy Ltd Buy 30-Jul-12 £151,780.68 Geoff Gander 596,111 @ 25.46p
Another riser was Jupiter Energy - up almost 6% after it said testing of new areas of its J-51 well in Kazakhstan was producing oil at a rate of 600 - 650 barrels per day. The firm also said its J-52 well had resumed production after upgrades following changes to health and safety rules. Upgrades were ongoing at a third well, J-50, the company said, but current oil sales commitments were being met from J-51 and J-52 production.
Overview of the Quarter: On 24 April 2012, the Company announced that its J-50 and J-52 wells had been given approval to begin Trial Production. An initial cargo of 6,000 tonnes (~42,000 barrels) was presold at a price of $US400/tonne (~$US58/barrel) and the full amount of $US2.4 million was received before deliveries began. Oil sold during the quarter totaled ~21,500 barrels and details regarding the next round of oil sales will be announced in due course. During the quarter the Company was advised that its application to prolong its exploration licence for a further two years, from December 2012 to December 2014 was approved; the Company is now finalizing the text of an addendum to the Block 31 Contract to reflect this prolongation. The Company has a 6+2+2 year exploration licence and this was the first of the two year extensions available to the Company; it is the Company's intention to use this prolongation to continue exploring on the recently extended southern section of Block 31. In addition to these exploration rights, the Block 31 contract also provides for a 25 year Production Licence for areas deemed to be commercial discoveries. Under this Production Licence, the Company is able to sell a minimum of 80% of the oil produced into the export market. A production facility to process the oil, with the capability to utilize the associated gas produced with the oil will need to be built. This facility must meet the relevant regulatory requirements in order to produce and sell oil under this licence from the already discovered Akkar East field in the northern section of Block 31. Work has now commenced on the planning and approvals required to build this production facility, construction of which is expected to commence in 2013. Funding for the remainder of the 2012 work program is now secured with a fully underwritten rights issue expected to close on 20 July 2012 that will raise $A11.25m (after deducting costs of the issue).
QUARTERLY UPDATE ON ACTIVITIES FOR THE PERIOD TO 30 JUNE 2012 KEY POINTS: · Trial Production from the J-50 and J-52 wells produced ~21,500 barrels during the quarter. All oil presold at $US400/tonne (~$US58/barrel) · Agreement from Ministry of Oil & Gas to extend Exploration Licence to December 2014 · Approval granted to test J-51 well with additional perforations at Mid Triassic (A) Zone horizon and 90 day production testing underway. Flow rates are currently ~600 bopd for co-mingled production from both horizons · Trial Production Licence applications for both J-51 and J-53 wells are progressing · Fully Underwritten Rights Issue to raise $A11.6m (before costs) announced with closure date expected to be 20 July 2012. Raising based on 1 new share for every 4 held, priced at $A0.40 per share
http://www.investegate.co.uk/Article.aspx?id=201207160700046421H
Reserves Update As part of the Trial Production application process, an estimation of reserves associated with the J-51 and J-53 wells had to be prepared under the accepted Kazakh standards and then submitted to the Kazakh authorities for approval. The Company can confirm that the State Reserves Committee has now approved reserves for the areas associated with the J-50, 51, 52 and 53 wells. The State Reserves Committee has approved C1+C2 reserves equivalent to ~37 million barrels (mmbbl) of oil recoverable under the Russian GOST classification system; while similar, the Board caution against extrapolation of this figure directly into the 1P (proved) or 2P (proved plus probable) classification of the Petroleum Resource Management System ("PRMS") used by international oil and gas companies. Furthermore the Board advises that the estimation of C1+C2 reserves for Block 31 quoted above includes reserves for both the Triassic and Jurassic formations penetrated by the four wells, J-50, J-51, J-52 and J-53 and advises that the 24 mmbbl 2P recoverable reserves estimation prepared by Synergy currently in the public domain post the release of the May 2011 Competent Persons Report (CPR) are those within only the Triassic horizon after drilling J-50 and J-52. The Company expects to appoint an independent reserves engineer to undertake a comprehensive reserves study using the PRMS standards in early 2013, following the drilling of the next two exploration wells scheduled for 2H 2012. These wells are to be drilled on the new southern extension.
Exploration Licence In March 2012 the Company applied for a 2 year extension to the Block 31 Exploration Licence. The Exploration Licence has an initial 6 year term (ending December 2012) with two 2 year extensions. The first of these extensions has now been approved by the Kazakh authorities, thus enabling the Company to continue exploring on Block 31 until at least December 2014. It is expected that the second 2 year extension will be applied for during 2014. The Block 31 contract also provides for a 25 year Production Licence term and it is the Company's intention to continue exploring on the southern section of Block 31 whilst also applying, during 2013, for a Production Licence for the already discovered Akkar East field in the northern section of Block 31.
J-53 WELL AND RESERVES UPDATE KEY POINTS: · Kazakh Government approves 1st 2 year extension to exploration period for Block 31 Licence. Exploration period now runs to December 2014. · Kazakh authorities approve reserves for Block 31 post drilling of J-53 well. · Analysis of the performance of J-53 during its 90 day production test indicates that the frac stimulation of J-53 propagated into the oil-water-contact below the oil. · Preparations to workover J-53 to isolate this water zone from the oil zones above are underway and the work is expected to be undertaken during Q3 2012. 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 update on Block 31.
Western Kazakhstan focused oil firm Jupiter Energy says trial production at its J-50 and J-52 wells has started. Initial combined production rate is expected to be around 600 bopd.
Jupiter Energy has begun its trail production from the J-50 and J-52 wells, where the initial combined production rate is expected to be 600 barrels of oil per day. The company has signed contracts with two oil traders to buy Jupiter's produced oil at $400 per tonne, equivalent to $58 per barrel. Initial production of 6,000 tonnes has been sold on a 100% pre-paid basis, the firm said. $1.2m has been received already, with the same amount due the week beginning Monday 30th.
Commenting on the new sales arrangement Chairman/CEO Geoff Gander said, "We are pleased that we have been able to reach terms for the presale of oil. It provides the oil traders with security of supply and Jupiter Energy with cash to assist in the continued development of Block 31."