The Board of Jupiter Energy, the Kazakhstan-focused oil exploration and production company, has provided shareholders with the following J-58 drilling update. The J-58 well is the Company’s sixth exploration well on Block 31, Jupiter’s 100 per cent owned permit in onshore Kazakhstan just east of the city of Aktau and the Caspian Sea. The well is located 3.8km southeast of the J-55 discovery well and is the second well that the Company has drilled on the southern area extension. This area was granted to the Company in 2011 and is located to the south of the already discovered Akkar East oil accumulation.
The J-58 well took a total of 37 days to drill and reached a total depth of 3,320m on 28 November 2012; the performance of the drilling operation was better than anticipated with the well reaching final depth ahead of schedule. Open hole logs have been acquired and production casing is now being run in preparation for the ninety day production testing period. Hydrocarbon shows while drilling, including a core in the reservoir zone, and subsequent open hole wireline logs all indicated hydrocarbons in the Triassic reservoir. The open hole logs indicated good levels of oil saturation and porosity, similar to that of the J-55 well which was also drilled on the same structure.
Analysis by independent consulting firm Reservoir Evaluation Services ('RES') confirmed some 152.8m of gross reservoir and approx. 75.6m of net pay at the Middle Triassic T2B carbonate reservoir unit, the primary reservoir objective in the well. In addition RES analysis also confirmed an additional 120.1m of gross reservoir and approximately 52m of net pay at the Middle Triassic T2A carbonate reservoir unit. Cut offs of 3.8% porosity and 50% oil saturation were used in the analysis, with a correction for mud filtrate displacement.
The reservoir is located on a separate structure to the Akkar East field and the geological indications are consistent with the Company's pre-drill expectations that the prospect being targeted by the J-58 well may contain up to 10 million barrels (mmbls) of potential resources.
Forward Plan (J-58)
The forward plan, after cementing of the production casing, is to stimulate and flow test the J-58 well for up to a maximum of ninety days from the T2B horizon during which time flow rates and reservoir pressures will be measured at various choke sizes and fluid samples will be collected for analysis. The well will then be shut in and if appropriate an application will be submitted to the relevant regulatory authorities for the well to be tested at the T2A horizon for a further ninety days. The mobilisation of the workover rig and testing equipment, and the required government approvals, will take two to three weeks before the Company can commence the initial testing program.
Further Updates
Further updates on progress with the J-58 well will be provided in due course. An update on the progress of the initial testing results from well J-55 is expected to be provided to shareholders during December. The J-53 well requires its Trial Production Licence (TPL) to be approved before the workover can be completed and shareholders will be updated on the TPL approval as soon as it is received.
