A4 January 2011J-52 Identifies Potential Oil in Primary and...

A4 January 2011
J-52 Identifies Potential Oil in Primary and Secondary
Zones
The Board of Jupiter Energy Limited (ASX: JPR) (?JPR? or ?the Company?) is pleased to
provide shareholders with an update regarding progress being made on the J-52 well, the
mapped play extension of the oil discovery in the J-50 well.
Background
The J-52 well is located in Jupiter Energy?s Block 31 (100% JPR), onshore Kazakhstan just
east of the city of Aktau and the Caspian Sea (see Figure 1). The well is 3.6 km southeast
of the J-50 well and 2 km north of NWZ#2 well (see Figure 2).
J-50 was completed as a production well and flowed oil at commercial rates from the Mid
Triassic during an extended production test during 2010. The Company is currently
completing the application process for a Trial Production Licence for J-50 which will permit
the well to be returned to production.
J-52
The J-52 is the Company?s 2010 commitment well in Block 31. The well reached a total
depth of 3152m on Monday 27 December 2010, after 54 days of drilling activity since
spudding. Wireline logs have been run and the well has been cased and is in the process of
being suspended and the drilling rig demobilised. Operational progress and geological
results have been consistent with the Company's drilling plans and well prognosis.
Hydrocarbon shows while drilling and subsequent wireline logging both indicate
hydrocarbons in two intervals in the well. Each reservoir formation was successfully cored
and each 9m core contained free, movable, oil.
Mid Triassic
This carbonate reservoir flowed oil on long term production test in J-50.
The gross reservoir interval in the J-52 well is from 2848m to 3096m (108m). There were
shows during drilling this interval and log interpretation calculates good porosity and high oil
saturation similar to other oil wells in the area. The log interpretation suggests
approximately 60m of net oil pay with no water. The net to gross is 55% which is typical for
the area.
The nett hydrocarbon column approximates the pre-drill estimates and supports previous
volumetric estimates.
Z Sand
This sandstone reservoir was intersected from 2790m to 2819m (29m) and had good
hydrocarbon shows while drilling. Wireline log analysis calculates approximately 5m of net
pay which is most likely oil saturated. This reservoir is very similar to a yet untested zone in
the J-50 well and also correlates to the Ju-XIII reservoir in NWZ#2 which flowed oil in 1969
and more recently during an unfinished recompletion. The age of this interval will be
determined by paleontological dating and then labelled Jurassic or Triassic and, for the
moment, has been named the Z Sand.
The volume and potential of the Z Sand is to be recalculated but the Company believes it
could be similar to the previously mapped Ju-XIII sand.
Forward Program
The Company is implementing plans to commence production testing the J-52 well using a
smaller and more cost effective service rig, beginning in late January 2011. The Company
will release further information on the production test program after it has been finalised.
If shareholders have any questions on this announcement, they should direct them to the
Company on (08) 9322 8222.
ENDS
All that the team expected with a positive result and within budget and time. 247