Insights

Why the Jupiter Energy (ASX:JPR) share price more than doubled today

The Jupiter Energy Limited (ASX: JPR) share price surged today after it signed a key infrastructure deal. Such announcements don’t…
The post Why the Jupiter Energy (ASX:JPR) share price more than doubled today appeared first on The Motley Fool Australia. –

The Jupiter Energy Limited (ASX: JPR) share price surged today after it signed a key infrastructure deal.

Such announcements don’t usually trigger such excitement among ASX investors. But the agreement will allow the junior oil explorer to unlock value in its Kazakh assets.

This explains the 123% surge in the Jupiter Energy share price to a more than one-year high of 7.8 cents at the time of writing.

Jupiter Energy share price surges on infrastructure deal

The binding framework agreement was signed with Kazakh registered Sleipnir Technologies. It sets a timetable for the development and lodgement of a detailed project development plan that will provide Jupiter Energy with the appropriate infrastructure to achieve 100% gas utilisation on the Akkar North (East Block), Akkar East and West Zhetybai oilfields.

Under Kazakh law, oil and gas wells can only be granted a Commercial Production License if they have the right infrastructure in place. Then only can the well operator sell to international markets.

Current output limited by license restrictions

Currently, Jupiter Energy can only sell oil to the Kazakhstan domestic market as it operates under a Trial Production Licence or during the “Preparatory Period” as it transitions to a full commercial license.

“During the ‘Preparatory Period’, Jupiter is able to produce from any well located on a field with an approved Commercial Production Licence without having the requisite gas utilisation infrastructure in place, only if all excess gas that is produced during production is used on the field for power, heating and the like,” said Jupiter Energy.

“Jupiter’s production is therefore already currently constrained on the Akkar North (East Block) and Akkar East fields as both fields are operating under ‘Preparatory  Period’ restrictions. 

“The West Zhetybai field has just commenced the approval process to transition from Trial Production to Commercial Production and when this approval process is complete, the West Zhetybai field will return to production, also under ‘Preparatory Period’ restrictions, until the appropriate 100% gas utilisation infrastructure is in place.”

Production output set to increase

The Akkar East and Akkar North (East Block) fields current produce around 225 barrels of oil a day. When the West Zhetybai field returns to production, the cumulative daily output from the three oilfields should increase to 340 barrels per day.

But following the successful commissioning of the gas utilisation infrastructure, Jupiter Energy should achieve cumulative daily production from the current wells of circa 700 barrels per day.

Additional oil production could then come from future, successful, drilling on the three fields.

Jupiter Energy and Sleipnir aim to lodge the project development plan with the the Kazakh Ministry of Energy by early 1Q 2022.

The big rise in the Jupiter Energy share price on Thursday pushes its one-year gain to 30%.

The post Why the Jupiter Energy (ASX:JPR) share price more than doubled today appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Why is the Medibank (ASX:MPL) share price struggling lately?
Here’s why the Whitehaven Coal (ASX:WHC) share price is rising today
Why this broker sees the Coles (ASX:COL) share price rising 15%
Why the Healthia (ASX:HLA) share price is rocketing 10% today
Why the Austal (ASX:ASB) share price is lifting today

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!