target share price 16 cents

From Westhouse Securities....................................................................................... Thursday, June 24, 2010
Westhouse Securities places target share price of $0.16 on Jupiter Energy
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In an analysis note, London-based stockbroker Westhouse Securities said that Jupiter Energy (ASX:JPR) has matured quickly over the past two years, following the acquisition of the Block 31 exploration permit in Kazakhstan in 2008.

The broker highlighted that Jupiter entered a new phase of development this month, following the start of production and the commercial sale of oil from the recently drilled J-50 well. Westhouse also noted the companys, independently assessed, 2P reserves of 8.6m barrels of oil and 12.2m barrels of prospective resources as well as, internally generated, estimates of an additional 22.2m barrels of prospective resources.

The J-50 well marks the start of commercial production, with the well producing at a stable average rate of 435bopd and peak rates above 600bopd achieved, Westhouse noted. The broker said it anticipates strong production growth in the short term.

Looking ahead, the stockbroker has a positive outlook for the company. Currently, the group is navigating the difficult period that all exploration companies experience when operations transition from solely exploration to a full-cycle E&P group. This is due to the relatively significant capital expenditure requirements needed to bring on production and before the start of meaningful cash flow.

According to Westhouse, Jupiter represents extremely good value, and it noted that: analysis yields a value of US$12.43 per barrel. Combining our NPV valuation of Jupiters 8.6m barrels of 2P reserves with the EMV for the prospective resource, yields an initial target price of 16.3 Australian cents. This indicates that Jupiter is trading on a significant discount to its full valuation.