LONDON (Alliance News) - Jupiter Energy Ltd on Friday lamented "constrained" progress during the first quarter of its financial year, with the oil exploration and production company seeking a longer term funding package to enable its drilling programme and for working capital from the second half of 2016.
There were no oil sales made during the three months ended December 31. All producing wells have been shut in since February 2015 due to low domestic oil prices in Kazakhstan. The company believes production from its Akkar East wells (J-51 and J-52) may resume during 2016, though it was unwilling to give any guarantee.
"The company has further restructured its operations and overall monthly operating costs have now been reduced by [about] 56% providing a year on year annual saving in running costs of approximately USD2.4 million," Jupiter said.
In an April 2015 deal, major shareholder Waterford Petroleum Ltd agreed to provide the company with up to USD5.0 million over and above an October 2014 USD5.0 million promissory note.
"The funds will provide the company with additional working capital via the issuance of promissory notes. Funds will be released as requested by the company, subject to the approval by Waterford of a Care & Maintenance budget," Jupiter said.
Waterford provided USD160,000 under the facility during the quarter, followed by a further USD200,000 on Thursday this week.
"The company continues to seek a longer-term funding package that will enable the commencement of the 2016 drilling program and for on-going working capital in the 2nd half of 2016 and beyond.
Shares in Jupiter were untraded at 11.00 pence on Friday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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