- Jupiter Energy's (JPR) share price has soared by over 500 per cent after it announced its Akkar East oilfield is ready for commercial production
- The company said the oilfield has all the necessary regulatory approvals to transition from trial production to commercial production
- Wells J-51, J-52 and 19 have resumed production, as part of the preparatory period required under the relevant code
- The three wells are only operating at 30 per cent right now, as the company isn't allowed to produce more than the field needs
- Shares in Jupiter were up 519 per cent, at 13.5 cents each, before a trading halt was implemented to answer ASX queries
Oil exploration and production company Jupiter Energy (JPR) has seen its share price skyrocket over 500 per cent after it announced its Akkar East oilfield is ready for commercial production.
In a statement to shareholders released before market open, Jupiter revealed the oilfield had completed all the necessary regulatory approvals to transition from trial production to commercial production.
The company also revealed Wells J-51, J-52 and Well 19 have resumed production, and more staff have been sent to the site, as part of the preparatory period required under the relevant Kazakhastan code.
During this period, Jupiter can produce from the wells without the requisite infrastructure — as long as all excess gas is utilised on the field.
As a result, the company said the three wells are only operating at around 30 per cent capacity to avoid gas being unutilised, though this will be monitored. It's also continuing discussion to access nearby infrastructure.
Alongside the Akkar East update, Jupiter also announced it expects the Akkar North oilfield will transition to Commercial Production during early 202`1, while the West Zhetybai oilfield will transition at the end of next year.
All of these updates have sent shareholders into a frenzy, with Jupiter's share price skyrocketing up 519 per cent in early trade.
However, the company implemented a pause in trading, and then a trading halt, at around midday as it prepares to respond to an ASX price query.
Jupiter said shares will remain locked up until it responds to the query, or until Thursday at the latest.
This is the second time in recent months Jupiter Energy's stock has risen rapidly. In late April, the company's share price went from 0.2 cents to 15 cents in a matter of days, before gradually dropping down again.
Shares in JPR last traded for 13.5 cents each before this afternoon's trading halt was implemented.