Jupiter Energy Limited provided an operations update, including confirmation that the J-51 and J-53 Trial Production Licences ("TPL") have been approved by the Kazakh regulatory authorities. Both J-51 and J-53 wells can be produced under Trial Production for a maximum of 3 years and during this time oil will be sold into the domestic market. The company plans to develop the required infrastructure to move these wells from trial to full production (and therefore from domestic to export oil sales) sooner than this maximum 3 year period.

Trial Production from the J-50 and J-52 wells continues and it is expected aggregate production from the Block 31 field during First Quarter 2013 will be approximately 1,400 barrels of oil per day (bopd) from the J-50, 51, 52 and 53 wells. Following the initial production testing of J-53 during which higher than expected water cuts were recorded, the well underwent a chemical treatment that partially reduced the water production; the well has subsequently undergone a cement squeeze to further reduce the water influx. Now that the TPL has been approved and in field operations can recommence at the J-53 well site, the well will now undergo an acid wash and a stabilized flow rate should be established in the near future.

Following the initial acid-wash stimulation of J-55, approximately 50m3 of oil (300 barrels) was recovered to surface, however stabilized natural flow was not established. A review of the bottom hole pressures recorded during the initial testing indicate that the flow characteristics of the T2B horizon may improve following a re-perforation and a further, more aggressive, acid stimulation. All the necessary approvals have been granted to commence production testing of the J-58 well.

Initial testing will be carried out at the T2B horizon and this will be followed by testing of the T2A horizon and potentially the T3 horizon. Each production testing period is for a maximum of 90 days. Assuming all three horizons are tested, the J-58 well could be on production testing until September 2013.

During December, the ZJ-40 drilling rig was moved to the location of the J-59 well and, after receiving the necessary approvals, the well spud on 31 December 2012. The well is anticipated to take approximately 60 days from spud through to running production casing and temporarily suspending the well.