Ann: Quarterly Cashflow Report , page-16

The company is cheap on 2P reserves but expenses on bopd. That's amplified by the delay, the pending dilution, the domestic sales and the high drill costs. J50 came in at $6.5mil, and J52 slightly less.

But the big issue is they are not straight talkers. Remember NWZ2? How many times did they say they had purchased a pump and it was ready for install?

Now the big inconsistency which costs $$$ is the TPL. First massive delays. We know why. J50 was located next to another competitors producing well. That's life. We can forgive JPR for the delays.

But what about the definition of Trial Production License?

It went from (10/05/2010) "Detailed update on J50 well" and mentioned on numerous ocassions:

"The Company is in the process of testing and cleaning up J-50 well prior to a 3 month production testing phase. During the testing phase and clean up phase a range of
production performance data will be acquired from the well. Much of this data is prescribed by the Kazakh authorities and is used to complete the various reports that are needed to apply for a Trial Production licence. A Trial Production licence is required by any company wishing to sell its oil into the export market"

Export market? OK, that's worth waiting for.

THEN...(24/04/2012) Trial Production commences...Yippee the wait is OVER...Only suddenly TPL has a new definition:

"The Board of Jupiter Energy Limited, the Kazakhstan-focused oil exploration and production company, trading on AIM (“JPRL”) and ASX (“JPR”), is pleased to announce that oil from the J-50 and J-52 wells is now being produced under their respective Trial Production Licences."

It's been granted, GREAT. But..

"Both wells can be produced under Trial Production for a maximum of 3 years and during this time oil is sold into the domestic market. The Company intends to move these wells from trial production to full production (and therefore from domestic to export oil sales) sooner than this maximum 3 year period. More detail on the plans to move to full production will be released later this year."

Ok so TPL isn't an export license now. It's only a domestic license. I'm sure glad I waited. Are people still wondering why the granting of TPL had a negative impact on sp?

Oh, but they daggled a carrot. They 'intend' to export sooner than the 3year period. They will announce this 'later' in the year. With typical JPR delay, I will hold my breathe and wait for the export sales.

The wait was worth it...NOT. Atleast we have dilution to look forward to.