StockMarketWire.com - Jupiter Energy's Kazakhstan operations at Aktau have not been affected by the recent unrest in Zhanaozen.

But the company says it will continue to monitor events and will update the market on this matter if necessary.

The company said that the J-51 well was producing at a stabilised flow rate of 630 barrels per day on a 9mm choke from the mid-Triassic reservoir.

Oil from J-51 continues to be sold into the domestic market at a price of approximately $42 per barrel at the well head with all transport and logistics costs being borne by the buyer.

All the necessary heating equipment is in place to ensure the smooth production and storage of oil prior to sale to the trading company

The company intends to run a full 90-day production test on the J-51 mid-Triassic reservoir, the maximum period allowed by the government.

The J-53 exploration well, located at the south-east corner of the Akkar East oil accumulation, spudded on 25 November and is the first of the company's two 2012 commitment wells.

The company believes that the area being targeted by this well may contain up to 10 million barrels of potential resources.

The vertical well has a planned total depth of approximately 3,200m true vertical depth.

The drilling of the J-53 has progressed on schedule since the spud date and as at 20 December the depth of the well was 1,661 metres and field operations continue to run smoothly.

Executive chairman Geoff Gander said, "The company is pleased with the performance of the J-51 well.

"Lessons we have learned from operations over the past two years continue to enable us to improve the performance of our wells and we look forward to getting early indications on the outcome of the J-53 well, probably in late January or early February 2012."


At 8:12am: [LON:JPRL] share price was 0p at 27p



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