Jupiter Energy Limited (JPRL) is pleased to provide shareholders with the following Operations Update.
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 has now 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 license 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 the 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 Licenses 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 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 has opened dialogue with various local oil marketing groups and is focused on looking to recommence oil production in early 2017, assuming the Trial Production Licences are approved for the Akkar East and West Zhetybai oilfields by the end of 2016.
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.
Summary:
The Company is pleased to be making good progress with the extension to the Exploration Licence and continues to work with the major shareholders and debt holders on deciding how to best put into place longer term funding arrangements for the development of the Block 31 permit area.
