29th Oct 2014 09:56
LONDON (Alliance News) - Jupiter Energy Ltd Wednesday said production and sales continued to fall during the third quarter despite achieving a better price as it continued to try to reduce costs and secure funding for next year.
Jupiter shares were down 4.6% to 20.75 pence per share Wednesday morning.
The company has seen production steadily fall throughout the 2014 year. In the first quarter of 2014, production stood at 67,800 barrels, which dropped to 62,460 barrels during the second quarter. During the third quarter ended September 30, production has continued to fall and totalled 54,792 barrels. Production was 60,600 barrels in the third quarter of 2013.
Production during the third quarter averaged 609 barrels of oil per day, compared to an average of 694 barrels of oil per day reported in the second quarter.
The decrease in production was mainly due to Jupiter's J-53 well in Kazakhstan remaining shut, as the company is awaiting further funding to install a new pump, alongside decreased production from wells J-50 and J-51, it said in a statement.
Sales have also continued to fall throughout the year. During the first quarter of 2014, sales totalled USD2.1 million, averaging USD32 per barrel. In the second quarter it dropped to USD2 million at an average price of USD32 per barrel. In the third quarter, the trend has continued with sales reaching USD1.9 million, despite achieving a higher price of USD34.50 per barrel.
"The company continues to investigate how to best achieve sales directly into the Kazakh pipeline system or sales that can be made to a refinery nearer the field. Both of these strategies would reduce transportation costs and therefore improve the price," it said in a statement.
In December, Jupiter plans to drill a well on Akkar East in Kazakhstan, named Well 19, which will be located near J-51 and J-52 and placed under trial production if successful.
The company continues to try to secure funding for its 2015 drilling programme and to replace the pump on its J-53 well. Once funding is secured, Jupiter plans to drill at least two more wells during 2015, it said.
By Joshua Warner; [email protected]; @JoshAlliance
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