By 
Jupiter Energy Limited (ASX: “JPR”) presents the following update on activities for the 3- month period ending 30 September 2024 (the “Quarter”). Also included in this report are details of any subsequent events that have occurred up to the date of this release.
KEY HIGHLIGHTS:
Unaudited oil sales revenue (including VAT) for the Quarter ending 30 September 2024 totalled ~$US1.96m/~$A2.93m (~49,600 barrels of oil).Oil sales for the Quarter were all through domestic sales channels – to both a major domestic refinery and a local mini refinery. There were no sales into the export market during the Quarter.The important Stage 2 100% gas utilisation project, involving connection into neighbouring infrastructure, is close to completion with commissioning of the gas pipeline expected to occur during November 2024.The West Zhetybai oilfield transitioned to its Full Commercial Production license on 01 September 2024.The Company released its Annual Report on 27 September 2024 and the Notice of Meeting for the 2024 Annual General Meeting was dispatched to shareholders on 28 October 2024. The AGM will be held on 29 November 2024.
The Quarter in brief:
During the Quarter, all production wells operated at expected levels, with the exception of the J-51 well, located on the Akkar East field. This well’s production is currently limited and, when funding allows, a workover will be carried out on this well, with a view to improving production.
Wells located on the Akkar East and Akkar North (East Block) fields are operating under their Full Commercial licences. Oil sales from these wells are subject to a monthly domestic quota that is set by the Kazakh Ministry for Energy. Oil produced from these oilfields, outside this domestic quota allocation, can be sold through other channels, including into the export market.
The West Zhetybai field operated under its Preparatory Period license for the months of July and August 2024 and successfully transitioned to its Full Commercial Licence on 01 September 2024.
As from 01 September 2024, oil produced on the West Zhetybai field is also subject to the monthly domestic quota set by the Kazakh Ministry of Energy. Any oil produced from this oilfield, outside this domestic quota allocation, can now be sold into both the domestic and/or export markets.
In terms of the validity dates of the Jupiter’s three Production Licences, these are:
Akkar North (East Block): 05 March 2046 Akkar East: 02 March 2045 West Zhetybai: 01 September 2046
3Q 2024 Oil Sales:
During the Quarter, unaudited oil sales revenue (including VAT) totalled ~$US1.96m (~$A2.93m) based on sales of ~49,600 barrels of oil (average price of ~$US39.50/bbl).
Cash receipts for the Quarter were ~$A2.83m. The variance between revenue recognised and cash receipts is due to the timing of the receipt of oil prepayments that are then amortised over one to two months of oil deliveries.
Approximate production of oil, by field, for the Quarter, was as follows:
Akkar North (East Block): 10,000 barrels (production from J-50)Akkar East: 26,000 barrels (main production from wells J-52 and 19)West Zhetybai: 13,600 barrels (production from J-58)
Domestic Oil Sales:
Oil sales during the Quarter were made through the Joint Venture vehicle, Jupiter Energy Trading LLC. Oil was sold into the Pavlodar refinery and unaudited oil sales revenue (including VAT) totalled ~$US0.463m (~$A0.691m) based on sales of ~10,600 barrels of oil (average price of ~$US43/bbl).
Mini Refinery Oil Sales:
During the Quarter, oil that was produced under a Preparatory Period Licence, not sold into the export market and/or not subject to the domestic quota allocation set by the Kazakh Ministry of Energy, was sold to a local mini refinery.
Unaudited oil sales revenue (including VAT) totalled ~$US1.5m (~$A2.24m) based on sales of ~39,000 barrels of oil (average price of ~$US38.50/bbl).
Export Oil Sales:
There were no sales of oil into the export market during the Quarter.
Export oil pricing is linked with the destination to which the oil is routed. Routing, associated logistics costs, the discount to Brent quoted by traders and the additional Kazakh taxes levied on export oil, meant that for the entire Quarter, the net price received for export oil was not attractive when compared to available domestic sales channels. The geopolitical tension in the area was a contributing factor to the discount to Brent being quoted by traders.
The Company continues to monitor the export oil pricing formula being offered by traders and will revert to this sales channel when the net price achieved is superior to pricing being offered via other available domestic sales channels.
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