Jupiter Energy strikes oil in primary target of J-50 well

Kazakhstan is well known for its excellent success rate for oil and gas explorers, but Jupiter Energy (ASX:JPR) has undoubtedly helped boost the profile of Kazakhstan this morning amongst the Australian investment community.

Jupiter Energy has already completed 3D seismic on the western portion of the permit and has successfully re-entered a shut-in well on the permit, but J-50 is the first well to be drilled by the company on the block – hence the significance of today’s news.

Shares in Jupiter were suspended late last week pending results from the well, which reached the top of the primary target on Sunday, and is currently 18 meters into a column which is expected to be approximately 120 meters in total.  The reservoir was intersected at 2939 meters, 19 meters lower than expected, but the company said its understanding of the geology remained unchanged.

Jupiter confirmed that the hydrocarbon shows indicate the presence of oil saturated rock in the top of the reservoir, in keeping with the characteristics of the producing adjacent North Akkar Field. The primary target is the Middle Triassic Reservoir of the J-50 well on Block 31 in the Mangistau Basin, Kazakhstan.

What next for investors? Over the next three days the well will be drilled a further 27 meters into the column and then extensive testing will commence, including the analysis of core samples and electric wireline logging.  Jupiter also confirmed this morning that was already starting to look at drilling the J-51 well, with the exact location to be confirmed soon.

"Our focus is now to complete the J-50 well in a timely manner and begin production testing. I am also working on preparing the tender for the J-51 well and JPR will announce the location of that well in the near term but clearly the positive result from J-50 may well influence that decision,” JPR Managing Director David Thorpe summarised.

http://www.proactiveinvestors.co.uk/companies/news/14738/jupiter-energy-strikes-oil-in-primary-target-of-j-50-well-14738.html