4th Jul 2014 10:10
LONDON (Alliance News) - Jupiter Energy Ltd Friday said that C1+C2 Block 31 reserves have fallen to about 27.0 million barrels of oil, from 61.2 million, as a fall in C2 reserves to about 23.0 million barrels of oil, from 58.9 million, more than offsetting a rise in C1 reserves to 4.0 million barrels, from 2.3 million.
In a statement, the oil and exploration company, which focuses on developing its onshore assets in western Kazakhstan, said that the decrease in C2 reserves is due to a need for further testing of the existing J-55, J-58 and J-59 wells during the trial production phase as well as further appraisal drilling in the areas between the existing West Zhetybai wells.
Jupiter said that other reasons included a reduced recovery factor due to insufficient production history and a revised volume (shrinkage) factor.
It said that approval of the preliminary Zhetybai reserves in a key step in the process of obtaining trial production licences for the J-55, 58 and 59 wells. The licences will allow the wells to be produced.
Jupiter said that the relevant Kazakh state bodies have approved the preliminary reserves report for the West Zhetybai field.
"The focus for West Zhetybai is to commence the TPL application process and bring wells J-58 and J-59 onto production as soon as possible subject to the availability of additional financing. In the medium term there will be more testing work carried out on the J-55 well and the plan is to drill at least two appraisal wells," Jupiter said in a statement.
Jupiter Energy shares were Friday untraded at 20.5 pence.
By Samuel Agini; [email protected]; @samuelagini
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