Jupiter Energy increases J-50 well net pay by 28% to 55m

Jupiter Energy (ASX: JPR) has provided an operational update on the J-50 well in Kazakhstan.

After more detailed interpretations of the wireline log data, the company has confirmed that logs now indicate a nett hydrocarbon pay of 55m in the Middle Triassic reservoir of the J-50 well.

This represents a 28% increase in the initial 43m net hydrocarbon pay count that was reported last week.

The interpretations show that a 55m interval of nett hydrocarbon pay has been intersected in a gross column of 120m. These results are significantly higher than the company prognosed at the J-50 well location.

The wireline log data and the company’s interpretation has also now been reviewed and confirmed by an independent third party.

The following operations have occurred on the J-50 well since the last update: production casing successfully run and cemented; preparations for running completion have continued; and preparations for well testing are underway.

As at 1200 hours 26th April 2010 (Aktau time) the rig was waiting on cement and preparing to run in hole and clean out production casing.

The main operational milestones are: run in hole and clean out the production casing; make up and run the completion; and perforate and clean up the well.

Jupiter said the key focus for the company in the immediate term is to complete the J-50 well and achieve initial flow rates as the well goes onto its 3 month production testing phase. Flow rates are expected from J-50 towards the end of this week.

On 24 April 2010, the company commenced tendering for turnkey drilling operations on the J-51 well, a step out well from the J-50 location.

Official notification of the tender was published in the local Kazakh press on this date and the closing date for tender responses has been set at 26 May 2010.

Jupiter expects that a decision will be made by the company during June and the results of the tender will be released around 17 June 2010.

The company said it proposes to commence drilling operations on the J-51 well as soon as practicable after 17 June 2010.

http://www.proactiveinvestors.co.uk/companies/news/15965/jupiter-energy-increases-j-50-well-net-pay-by-28-to-55m-15965.html