Oil exploration and production company, Jupiter Energy Limited (ASX: JPR) has provided an operations update covering the drilling and testing of the J-57 well, located in the previously undrilled faulted block on the south extension of the Akkar East oilfield.
As at 5th December 2018, the drilling of this well reached to a total depth of 3120 m. During the drilling, the primary target Mid Triassic was intersected at 2780 m. It was found that the target reservoir was 120m thick which was similar to that which was found when drilling the J-52 well. Open- hole logs while drilling indicated possible hydrocarbons in the Mid Triassic reservoirs.
The completion and testing of J-57 well took place during the first quarter of 2019. The company perforated the well underbalanced with a tubing conveyed perforating guns, monitoring fluid levels and running pressure gauges.
After that, the acid treatment was used to stimulate the saturated formation and facilitate the flow of oil into the wellbore. From the analyses of the recovered water, it was concluded that the whole reservoir T2B was water wet. It is believed that a fault sealing Blocks III and IV on Akkar East field is the most likely reason for this result.
The well is still is undergoing fluid monitoring. After completing this work, the well will be plugged and abandoned as per Kazakh regulatory requirements.
As part of the future drilling program, the company has set up contracts with local drilling operators to complete a side track of well J-53 and for the drilling of a new well on the west Zhetybai oilfields. The drilling of the J-60 well will be funded through a new $US 3 million prepayments for oil produced from the J-58 and J-50 wells. The company is planning drilling work for the second half of 2019 and it is expected that oil from the J-53 and J-60 wells will contribute towards increased oil production and sales revenue.
During the six-month period to 31 December 2018, the production on the Akkar East oilfield was from wells 19, J-51 and J-52. Oil from the West Zhetybai oilfield was produced from the J-58 well and there were approximately 112,750 barrels of oil produced during the period. For the half-year period, the company reported revenue from oil sales of around $A4,128,833 as compared to the sales of $A677,989 in the previous corresponding period (pcp). During the period, around 60,250 barrels of oil were produced from Wells 19, J-51 and J-52 under their respective TPL’s.
The stock is trading at a price of $0.039 with a market capitalisation of ~$5.98 million as on 23 April 2019. The stock has provided a year till date return of -25.00 & also posted returns of 2.63% over the past one-month period.