AIM-listed Jupiter Energy said it is making good progress on its evolution from an oil exploration company to a exploration and production firm.
The Australia-based but Kazakhstan-focused oil outfit saw its loss before tax narrow to A$2.02m in the six months to December 31st, from A$3.25m the year before.
As for the company's top line, it is not yet in a position to earn money from oil sales but seems to be doing OK as an investment house; interest revenue was insignificant at A$0.02m, down from A$0.04m the year before, but the company also booked a A$0.51m paper gain on a financial derivative and a A$0.30m foreign currency gain.
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Cash and short-term deposits at the end of 2011 stood at A$4.60m, down from A$8.97m a year earlier. Assets increased to A$45.0m (2010: $34.4m) and equity increased to $40.6m (2010: $33.1m).
On the operational side, the company said the drilling results from the Block 31 permit continue to offer encouragement. The J-51 well, like J-50 and J-52 before it, was confirmed as a commercial discovery when the results of the drilling in the second half of last year were analysed.
The well was shut in on 4th of February, 2012, and an application will be submitted to the relevant regulatory authorities for the well to be granted a Trial Production Licence. This application will be lodged after the gathering of results from the J-53 well, the company's fourth exploration well.
The company said it has received approval for Trial Production Licences for the J-50 and J-52 exploration wells, but the company still needs to jump through a few regulatory hoops before it can start production.
"Whilst the delays in the granting of the requisite approvals to commence production have been frustrating, the goal of developing Jupiter Energy into a full cycle E&P [exploration and production] company with a meaningful production profile and sizeable 2P reserves base remains on track," the company statement said.
The shares rose 2.5p to 46.5p.
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