LONDON (Alliance News) - Jupiter Energy Ltd on Monday said the exploration licence covering block 31 in Kazakhstan has been extended, prompting the company to launch a three-year work programme.
Jupiter said authorities have extended the licence until December 29, 2019, and the three-year work programme is currently being progressed for approval by authorities.
Notably, Jupiter originally planned on acquiring more nearby acreage and requested a four-year extension until December 2020, but the three-year extension has been awarded on the basis that Jupiter maintains its current acreage.
However, if Jupiter does decide to expand the acreage then a one year extension "would be considered".
"The three year licence extension is a positive step forward and will allow the company to undertake further work on the Akkar East and West Zhetybai oilfields, further de-risking the current state accepted preliminary oil reserves on both oilfields," said the company.
As part of the work programme submission, trial production licence extensions for the Akkar East and West Zhetybai oilfields for the period to December 29, 2019, will also be applied for. Currently the licences approved for the Akkar East and West Zhetybai oilfields both end on December 29, 2016.
"The company has opened dialogue with various local oil marketing groups and is focussed on looking to recommence oil production in early 2017, assuming the trial production licences are approved for the Akkar East and West Zhetybai oilfields by the end of 2016," said Jupiter.
Jupiter Energy shares were down 2.4% to 10.25 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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