The Board of Jupiter Energy Limited, the Kazakhstan-focused oil exploration and production company, quoted on AIM (JPRL), is pleased to provide shareholders with the following update regarding oil sales.
The Company has concluded an agreement with a local Kazakh oil trader for the sale of 2,000 tonnes of oil (~14,000 barrels) at a price of $US365/tonne (~$US52/barrel). This price is a reduction of some 8.25% from the last round of oil sales and reflects the softening in global oil prices since late April 2012, when the last contract was signed.
Like the April contract, under this sale arrangement the cost of transportation from the field and storage at the facility is borne by Jupiter. The sale price of ~$US52/barrel adjusted for the budgeted costs of transportation and storage at ~$US6/barrel, equates to a net price of ~$US46/barrel.
The total amount of $US730,000 has been prepaid and all monies received. Oil deliveries under this contract commenced on 17 August 2012 and are anticipated to be completed by 1 September 2012.
The Company is currently reviewing its ongoing arrangements in terms of the methodology used for the transportation and storage of oil and any changes to the process will be reflected in the September round of oil sales.
