(MENAFN - ProactiveInvestors - UK) Kazakhstan focused oil junior Jupiter Energy (LON:JPRL) saw continued progress in its second quarter, which ended on December 31.
The company said it is moving towards its goal of developing into a full cycle exploration and production company, with a production profile and material reserves.
Trial production from the J-50 and J-52 wells, on Block 31 in the Mangistau basin, continued and total oil revenues totalled US1.83mln in the quarter. The produced oil was sold un-processed to a local facility at a price of US43.50 per barrel.
Jupiter hopes to develop more flexibility in the future so that its oil can be delivered into state owned oil pipelines, after a full field development, and it can then move from domestic to export sales.
In the meantime Jupiter is continuing its efforts to expand the field via drilling, with the J-55 and J-58 wells achieving notable successes.
Also, the J-53 well has been worked over, and it will shortly undergo further stimulation in the current quarter. Drilling is currently underway on the J-59, which is expected to hit target depth next month. J-59 is the third well to test the new southern extension area.
The work on J-59 is being supported by the US3mln loan which was agreed earlier this month.
Another potential milestone in the current quarter will be an updated competent person's report.
February is set to be an important month, according to City broker finnCap, which highlights the J-59 result as one of the key announcements.
"With a 100% drilling success rate and the shares unchanged year-on-year, we believe Jupiter is both overlooked by the market and significantly undervalued," finnCap analyst Will Arnstein said in a note this morning.