Pato's just put out an update for the september quarter if anyones interested.
Highlights Strategic investor secured. After the successful $16.67m capital raising, the Waterford Group (Waterford) now has a ~27% equity stake in JPR. We believe the introduction of Waterford is a significant milestone for JPR given the success of some of Waterford�s past transactions, including First Calgary Petroleum (sold to ENI in 2008 for ~900m). We expect Waterford to provide strong support to JPR on a financial, strategic and operational level.
Changes to the Board. With the introduction of Waterford as a substantial shareholder, Alastair Beardsall and Baltabek Kuandykov have joined the JPR Board in place of Andrew Childs and Erkin Svanbayev. Alastair is currently Chairman of AIM listed Sterling Energy Plc while Baltabek is currently President of Meridian Petroleum, a privately held Kazakh oil and gas company.
J-50 well tests at 360bopd. The J-50 well completed the maximum 3 month production test and produced 360bopd during July. This was an encouraging result however, the well is currently shut-in while JPR applies for a trial production licence for J-50 which will allow JPR to sell oil to the export market (expected by yearend). The length of time it has taken JPR to spud the J-50 well and complete production testing is disappointing given the well was spudded at the end of 2009.
J-52 well to drive resource upgrade. The J-52 well is planned to be spudded in early November. J-52 has the potential to prove up an additional 22mmbbls of oil resources in the shallower Jurassic reservoir and confirm the eastern extent of the East Akkar Middle Triassic structure. The well is expected to take 70 days to drill, evaluate and suspend.
We maintain our "SPECULATIVE BUY" on JPR and price target of $0.13/share. We are encouraged that JPR is fully funded to complete 3 more wells (J-52, J-51 and NWZ 2) but highlight future value will be driven by the outcome of the J-52 (early 2011) and J-51 (end 1Q 2011) wells and the granting of a trial production licence (year end) allowing JPR to sell oil to the export market.
Full report: http://www.jupiterenergy.com.au/files/news/JPR_191010.pdf
JPR Price at posting:
46.5¢ Sentiment: None Disclosure: Not Held
