Jupiter Energy expects AIM listing on Nov 9

Oct 14. Proactive Investors UK

By Andre Lamberti

Jupiter Energy expects AIM listing on Nov 9Kazakhstan-focused oil and gas explorer Jupiter Energy Ltd (ASX:JPR) expects its shares to start trading on London’s AIM market on November 9, 2011 now that it has lodged all relevant documentation with the London Stock Exchange.

The expected AIM ticker is ‘JPRL’. Evolution Securities is Jupiter’s Nominated Advisor (NOMAD) for both the AIM listing process and ongoing advice.

Meanwhile, Kazakh bank and finance institution Halyk Finance has initiated coverage on Jupiter with a 12-month target price of A$1.8 and a ‘Buy’ recommendation.

Analyst Miramgul Maralova said she does not expect problems in Jupiter funding its US$60 million exploration and development capex over the next five years and estimates that the company needs to raise US$20 million in a mix of debt and equity in 2012-2013.

Jupiter Energy enjoys a strong backing from its two largest shareholders that, combined, hold a 40 percent of the firm, Maralova said. “We calculate that beyond 2013 the company?s cash flows should be large enough to finance the capex.”

Last week, Jupiter announced the Kazakh Central Development Committee has approved the group’s application to start trial production from the J-50 and J-52 exploration wells.

And as a result, production is expected to begin from these two wells before the end of 2011.

Additionally Jupiter confirmed that it has agreed terms for a US$3.45 million convertible note with major shareholder Soyuzneftegas Capital Limited.

Because of the state of global equity markets Jupiter decided against a simultaneous funding alongside the AIM listing. Instead it plans to raise funds in the first half of 2012.

It believes the funds raised via the convertible note will be sufficient to cover the listing costs as well as funding the on-going drill programme.

Jupiter Energy Limited (ASX: JPR) is an oil exploration and production company, listed on the Australian Stock Exchange (ASX), with acreage in Kazakhstan. Its initial purchase was 100% of an exploration permit (known as Block 31) in the Mangistau Basin. The permit currently covers 123 km2 in an area of proven oil production.

The Block 31 permit has a 10 year exploration licence (initial 6 years + two possible extensions of 2 years each) as well as a 25 year production licence. The Company has its operations based in the port city of Aktau, which is located approximately 80km from Block 31.

The Company has an experienced Board and Management team with excellent in country experience and a proven track record in developing organisations from early phase to proven revenue generation.