TIDMJPRL
RNS Number : 5529N
Jupiter Energy Ltd
27 October 2016
27 October 2016
Jupiter Energy Limited ("Jupiter" or the "Company")
QUARTERLY UPDATE ON ACTIVITIES FOR THE PERIOD TO 30 SEPTEMBER
2016
KEY POINTS:
-- Block 31 Exploration Licence extended to 29 December 2019.
-- 3 year Work Program (2017-2019) is now being progressed with
all the relevant Kazakh Regulatory Authorities towards final
approval.
-- The Company is now working with various oil marketing groups
to position itself for a return to oil production once all the
relevant Trial Production Licences for the 2017-2019 period have
been approved.
-- Company continues to work on various options to provide long
term funding for the ongoing development of Block 31.
-- Discussions continue with relevant parties regarding the
resolution of the Akkar North division of Reserves.
-- Baltabek Kuandykov accepts position as President: Jupiter (Kazakhstan)
-- 2015/2016 Annual Accounts lodged.
-- Annual General Meeting to be held on 4 November 2016 in Perth, Western Australia
Jupiter Energy Limited (ASX: "JPR", AIM: "JPRL" and KASE:
"AU_JPRL") presents the following update on activities for the 3
month period ending 30 September 2016 (the "Quarter"). Also
included in this report are details of subsequent events that have
occurred up to the date of this release.
The Quarter in brief:
There were no oil sales made during the Quarter. All producing
wells were shut in during February 2015, and remain shut in, due to
low domestic oil prices.
Exploration Licence Extension:
In late March 2016, the Company submitted a formal application
to the Ministry of Energy for a 4 year extension (through to 20
December 2020) to the Exploration Period on Block 31. This
submission was based on the Company acquiring additional acreage to
the North East and South East of the current permit area.
The Company announced on 19 September 2016 that it had formally
signed Addendum 7 to Contract 2275 which confirms that the Ministry
of Energy has agreed to a three (3) year extension to the
Exploration Period, through to 29 December 2019. The 3 year
extension is based on the Company maintaining its current acreage
and the Ministry of Energy has indicated that if the Company does
proceed with the North East and South East land extensions then a
further one (1) year extension (to 29 December 2020) would be
considered.
The three year licence extension is a positive step forward and
will allow the Company to undertake further work on the Akkar East
and West Zhetybai oilfields, further de-risking the current State
Accepted preliminary oil reserves on both oilfields.
The Company must now get its proposed three year Work Program
(2017-2019) approved by the Kazakh Regulatory Authorities with the
next stage of the approval process expected to be progressed over
the next few months.
As part of the Work Program submission, Trial Production
Licences extensions for the Akkar East and West Zhetybai oilfields
for the period to 29 December 2019 will also be applied for.
Currently the Trial Production Licences approved for the Akkar East
and West Zhetybai oilfields both end on 29 December 2016.
The Company currently believes that the timeframe for these
approvals is the end of 2016 and should culminate in a further
addendum to Contract 2275 (Addendum 8) being signed.
The Company will keep shareholders updated on progress with the
approval of the 2017-2019 Work Program and the extension of the
Trial Production Licences for the Akkar East and West Zhetybai
oilfields.
Forward Plan - Operations:
The Company has opened dialogue with various local oil marketing
groups. Assuming the Trial Production Licences are approved for the
Akkar East and West Zhetybai oilfields by the end of 2016, the
requisite funding to recommence operations is in place and domestic
oil prices reach a level that ensures cashflow from operations is
improved, the Company will consider recommencing production during
the 1(st) half of 2017.
Extension of J-50 Trial Production Licence:
The Company advised shareholders on 28 November 2014 that the
application to extend the Trial Production Licence for well J-50
was being held by the Kazakh Committee of Geology pending
resolution of the allocation of reserves associated with the
well.
The J-50 well has been shut in since 29 December 2014 (the date
at which the last Trial Production licence expired).
The underlying issue delaying the Trial Production Licence
renewal is the demand by the Committee of Geology that Jupiter
Energy reach agreement with its neighbour MangistauMunaiGas (MMG)
over the division of reserves associated with both companies' share
of the Akkar North accumulation. Jupiter Energy has been in
dialogue with MMG on this issue for some time but has been unable
to reach formal agreement with MMG with respect to the division of
Akkar North reserves.
Board Appointment:
On 30 August 2016 the Company announced the appointment of
Alexey Kruzhkov as a Non-Executive Director of the Company. Alexey
is the appointed Board representative of Waterford Finance and
Investment Limited, the Company's largest shareholder and replaces
Alastair Beardsall who retired on 31 May 2016. Alexey also joins
the board of each Jupiter subsidiary.
Alexey holds an Engineering Degree and an MBA and has over 10
years' experience working in the investment industry, focusing
primarily on organisations involved in Oil & Gas, Mining and
Real Estate. He has served as a Director on the Boards of companies
listed in Canada and Norway. He is a member of the executive team
of Waterford Investment and Finance Limited.
President: Jupiter (Kazakhstan):
The Company has appointed Baltabek Kuandykov as President:
Jupiter (Kazakhstan). Baltabek has been on the Board of Jupiter
Energy Limited since 2010 and this new position has been created to
ensure that the Jupiter organisation is represented at the
appropriate level within Kazakhstan, particularly in relation to
interaction with government officials and at events such as the
upcoming EXPO 2017, at which Jupiter is a sponsor.
2015/2016 Annual Accounts:
On 30 September 2016 the Company lodged its Annual Accounts for
the 2015/16 Financial Year. A copy of the Annual Accounts is
available on the Jupiter website.
Annual General Meeting:
The 2016 Annual General Meeting (AGM) will be held on Friday 4
November 2016 in Perth, Western Australia. The Notice of Meeting
outlining the business to be covered at the AGM was mailed to
shareholders on 3 October 2016. A copy of the Notice of Meeting is
available on the Jupiter website.
Licence Information:
As is required under ASX disclosure rules, the Company confirms
that it currently holds the following licence:
Country Block / Interest Interest Interest
Licence held as acquired held as
at 30 June / disposed at 30 September
2016 of during 2016
the Quarter
------------ ---------- ------------ ------------- -----------------
Kazakhstan Block 31 100% Nil 100%
------------ ---------- ------------ ------------- -----------------
Capital Structure and Finances:
As at 30 September 2016, the Company has 153,377,693 listed
shares trading under the ASX ticker "JPR", the AIM ticker "JPRL"
and the KASE ticker "AU_JPRL".
The Company has no options or Performance Shares, listed or
unlisted, in issue.
As at 30 September 2016, total Company debt outstanding was
$US32,270,689 through a total of five (5) Promissory Notes, with
the following holders:
-- Waterford Petroleum Limited: $US10,379,792
-- Waterford Petroleum Limited: $US9,227,453
-- Mobile Energy Limited: $US9,845,049
-- Midocean Holdings Limited: $US2,123,463
-- Other Private Investors: $US694,931
As at 30 September 2016, the Company has drawn down $US1,509,133
(including accrued interest) under the new Funding Agreement and
therefore has a further $US3,409,867 (including accrued interest)
available to it under this Agreement.
Unaudited net cash reserves as at 30 September 2016 stood at
approximately $A461,238.
The Directors of the Company continue to defer their Directors'
Fees until such time that the Company has an improved cashflow.
Summary:
Progress during the Quarter was positive with the three year
extension to the Exploration Period on Block 31 through to 29
December 2019 being signed. Sufficient working capital is now in
place until the end of September 2017 to enable the Company to work
towards resolving its longer term funding requirements and the
focus will be to get the necessary approvals from the relevant
Kazakh Regulatory Authorities for the 2017-2019 Work Program and
secure sufficient funding so that work can be commenced in early
2017.
If shareholders have any questions regarding this Quarterly
report they are welcome to contact the Company on +61 89 322
8222.
Geoff Gander
Chairman/CEO
S
Enquiries:
Jupiter Energy (+61 89 322 8222)
Geoff Gander (geoff@jupiterenergy.com)
finnCap Ltd +44 (0)20 7220 0500
Matt Goode/Emily Watts/Christopher Raggett (Corporate
Finance)
Simon Johnson (Corporate Broking)
Competent Persons Statement:
Keith Martens, BSc Geology and Geophysics, with over 35 years'
oil & gas industry
experience, is the qualified person who has reviewed and
approved the technical information contained in this report.
About the Company:
Jupiter Energy Limited is an oil exploration and production
company, quoted on the AIM, ASX and KASE markets. The Company is
focused on developing its onshore assets in western Kazakhstan. In
2008 the Company acquired 100 per cent of the Block 31 permit,
located in the oil-rich Mangistau Basin, close to the port city of
Aktau.
Jupiter has a proven in-country management team, led by an
experienced, international Board, together possessing the skills,
knowledge, network and attention to detail needed to operate
successfully in Kazakhstan. The forward plan will see Jupiter
develop a group production facility on Block 31 to process, store
and export oil. This topside infrastructure is a key element in
moving to long-term production and the achievement of self-funding
for further development of Block 31.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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