Jupiter Energy Limited - Quarterly Update on Activities for June 2024
JPR (JPR) Share Update July 2024 Sunday 21st
Jupiter Energy Limited Reports Quarterly Update for June 2024
Jupiter Energy Limited (ASX: JPR) has released its quarterly update for the period ending 30 June 2024, reporting significant oil sales revenue and progress on key projects.
Instant Summary:
- Unaudited oil sales revenue for Q2 2024 totaled ~$US2.3 million (~A$3.5 million).
- All oil sales were through domestic channels due to poor export margins.
- Stage 2 gas utilization project is in its final phase, expected to complete by late September 2024.
- Application submitted to transition West Zhetybai oilfield to Full Commercial Production.
- J-51 well on Akkar East field requires a workover to improve production.
Revenue and Sales
During the quarter ending 30 June 2024, Jupiter Energy Limited reported unaudited oil sales revenue of approximately $US2.3 million (~A$3.5 million). This revenue was generated from the sale of around 56,000 barrels of oil, all of which were sold through domestic channels. The company opted out of exporting oil due to poor margins caused by routing restrictions and geopolitical tensions.
Domestic and Mini Refinery Sales
Oil sales were made to major domestic refineries and local mini refineries. The revenue from domestic sales was around $US0.417 million (~A$0.638 million) from approximately 10,650 barrels of oil. Additionally, oil sold to local mini refineries under a Preparatory Period Licence brought in around $US1.89 million (~A$2.893 million) from 45,350 barrels of oil.
Production and Operations
Production wells operated as expected, except for the J-51 well on the Akkar East field, which requires a workover to improve production. Wells on the Akkar East and Akkar North (East Block) fields are operating under Full Commercial licences, while the West Zhetybai field is under a Preparatory Period licence.
Stage 2 Gas Utilization Project
The Stage 2 gas utilization project has entered its final phase, with construction work on the Akkar East and Akkar North (East Block) oilfields expected to be completed by late September 2024. This project aims to integrate these oilfields into the neighboring infrastructure, enhancing gas utilization and benefiting local communities.
Licence Application
Jupiter Energy has submitted an application to the Kazakh Ministry of Energy to transition the West Zhetybai oilfield from its current Preparatory Period status to a Full Commercial Production licence. A decision is expected by the end of August 2024.
Financials and Capital Structure
As of 30 June 2024, Jupiter Energy had 1,273,652,188 listed shares on issue and a total debt of $US16,173,261. The company expects to make another repayment of $US500,000 to Noteholders by the end of August 2024. The debt remains interest-free until at least 31 December 2026.
The quarterly update shows steady revenue and progress on key projects, which could positively impact Jupiter Energy's stock. The completion of the Stage 2 gas utilization project and the potential transition of the West Zhetybai oilfield to Full Commercial Production are significant milestones. However, the need for a workover on the J-51 well and the reliance on domestic sales due to poor export margins may temper investor enthusiasm.
Investor Reaction:
Investors and analysts have shown cautious optimism regarding Jupiter Energy's quarterly update. The steady revenue and progress on the gas utilization project are seen as positive signs. However, concerns about the J-51 well and the company's ability to secure better export margins remain.
Conclusion:
Investors should keep an eye on the completion of the Stage 2 gas utilization project and the decision on the West Zhetybai oilfield licence. These developments could significantly impact Jupiter Energy's future performance. Staying informed about the company's progress and strategic decisions will be crucial for making informed investment choices.