Jupiter Energy : Quarterly Activities Report - Dec 2021

Suite 2, Level 13

350 Collins Street Melbourne VIC 3000 Tel: [phone] www.jupiterenergy.com

18 January 2022

Jupiter Energy Limited ("Jupiter" or the "Company")

QUARTERLY UPDATE ON ACTIVITIES FOR THE PERIOD TO 31 DECEMBER 2021

KEY POINTS:

• The civil unrest that occurred in Kazakhstan in early January 2022 has abated and operations have, in the main, returned to normal. The health and safety of staff remains the Company's number one priority and there are no issues to report.
• Changes within the Kazakh Government, and in particular the Ministry of Energy, may result in delays to a range of approval processes currently underway.
• Unaudited oil sales revenue (including VAT) during the Quarter ending 31 December 2021 totalled approximately ~$US698,000 (~21,200 barrels of oil).
• Oil produced and sold during Calendar Year (CY) 2021 totalled ~16,000 tonnes (~120,000 barrels). This reduced production profile was due to the Kazakh regulatory requirement for all wells to be subject to constrained production when operating under Preparatory Period restrictions.
• All oil continues to be sold into the Kazakh domestic oil market, as required under Preparatory Period restrictions.
• The approval process to transition the West Zhetybai oilfield into Commercial Production (under Preparatory Period restrictions) continues. The J-58 well will be shut in until all approvals have been received. It is expected that this well will not recommence production until the end of 2Q 2022, assuming the approval process is not too disrupted as a result of recent changes in Ministerial personnel.

• Jupiter resubmitted a Joint Field Development Plan (JFDP) for the entire Akkar North accumulation to the Kazakh Ministry of Energy. The JFDP was completed with neighbour MMG. It is expected this version of the JFDP will be approved by the Ministry during 1Q 2022, assuming the approval process is not too disrupted as a result of recent changes in Ministerial personnel.
• Jupiter completed, with its neighbour Ushkuyu LLP, a Joint Field Development Plan (JFDP) for a small accumulation adjacent to the West Zhetybai oilfield. This JFDP will be submitted to the Kazakh Ministry of Energy for review during 1Q 2022.
• The Company made measured progress during the Quarter in developing its Project Development Plan to achieve 100% gas utilisation on all three of the Company's oilfields during CY 2022. This timeframe assumes that the approval process is not too disrupted as a result of recent changes in Ministerial personnel.
• The Company continues with its Strategic Review process. Discussions with 3rd parties centre around working with Jupiter to assist with the funding required to achieve 100% gas utilisation, commencing the sale of export oil and undertaking further drilling on the Company's 3 oilfields.

Jupiter Energy Limited (ASX: "JPR") presents the following update on activities for the 3- month period ending 31 December 2021 (the "Quarter"). Also included in this report are details of any subsequent events that have occurred up to the date of this release, including the impact of the civil unrest experienced in Kazakhstan in early January 2022.

The Quarter in brief:

During the Quarter, there was no production from well J-58, located on the West Zhetybai field. The J-58 well was shut in as the approval process to transition the West Zhetybai oilfield to Commercial Production continued. It is expected that this approval process will be completed during 2Q 2022. It should be noted that there have been recent changes within the Ministry of Energy, post the civil unrest, and this may lead to some delays in this approval process.

Wells J-51,J-52 and 19 continued constrained Commercial Production as regulated by "Preparatory Period" restrictions. These wells are located on the Akkar East field.

The J-50 well, located on the Akkar North (East Block) also continued constrained Commercial Production as regulated by "Preparatory Period" restrictions.

Oil Sales:

During the Quarter unaudited oil sales revenue (including VAT) totalled ~$US698,000 (~$A0.96) based on sales of approximately 21,200 barrels of oil (average price of ~$US33/bbl). Kazakh domestic oil pricing reflected the worldwide oil prices during the Quarter.

Cash receipts for the Quarter were ~$A1.155m. The variance between revenue recognised and cash receipts is due to the timing of the receipt of oil prepayments that are then amortised over several months of oil deliveries.

All oil was sold into the Domestic market, as is required by Kazakh laws, when wells are producing during the "Preparatory Period" of a Commercial Production Licence.

As covered in earlier announcements, the "Preparatory Period" allows an operator to transition between Trial Production (during which time excess gas from production can be flared) to Commercial Production, when an operator must have access to the requisite infrastructure to provide for 100% utilisation of all excess gas produced whilst wells are in production.

During the "Preparatory Period", the Company can produce from any well, or wells, located on fields 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. Jupiter's production is therefore constrained to ensure all excess gas that is produced is used on the field in this manner.

Approximate production of oil, by well, for the Quarter was as follows:

• J-50:6,200 barrels (the flow rate of this well was constrained due to Preparatory Period restrictions and thus limited to daily production of ~8.5 tonnes/~70 barrels per day)
• J-51,J-52 and Well 19: 15,000 barrels (flow rates of these 3 wells were constrained due to Preparatory Period restrictions and thus limited to cumulative production of ~21 tonnes/~150 barrels per day).

• J-58:NIL (the well is shut in as the West Zhetybai oilfield undergoes the approval process to transition to its Commercial Production Licence).

Shut in of Production due to civil unrest:

As announced to shareholders on 07 January 2022, Kazakhstan experienced a range of protests around the country in early January 2022 and the President declared a two- week State of Emergency.

There were several pockets of disorder, including the city of Aktau, where Jupiter Energy's operations are based.

The Board decided to shut in production as roads that allowed access to and from the oilfield were subject to blockades by protestors.

Some on field maintenance was carried out during the shut in period and production resumed on 10 January 2022.

The health and safety of Jupiter's staff is the Company's number one priority at all times and hence why this decision was made.

The transition of the West Zhetybai oilfield to Commercial Production:

The West Zhetybai oilfield has been shut in since 31 August 2021, when the approval process to transition the field to Commercial Production began.

It is expected that the approval process will be completed during 2Q 2022, at which time the J-58 well will resume constrained production. It should be noted that there have been recent changes within the Ministry of Energy, post the civil unrest, and this may lead to some delays in this approval process.

Akkar North Oilfield - Joint Development Plan:

The Akkar North oilfield area is licenced under two separate contracts - one is held by Jupiter Energy (Akkar North [East Block]) and the remainder of the field is held under licence by Jupiter Energy's neighbour MangistauMunaiGas (MMG).

As already announced, as part of the approval process of moving Akkar North (East Block) into Commercial Production, the Kazakh Central Commission for Exploration and Development of Hydrocarbon Deposits (the CCED) noted that under the Kazakh Sub

Surface Code (specifically paragraph 1 of Article 151 of the Code) Jupiter Energy and MMG would need to "conclude an agreement on joint exploration and production or production of a deposit or field as a single object".

During the Quarter, Jupiter Energy and MMG concluded a 2nd version of the Joint Field Development Agreement for the future development of the entire Akkar North oilfield after the 1st version had been rejected by the Kazakh Ministry of Energy, post their review of the agreement.

It is expected that the 2nd version of the Joint Field Development Agreement will be accepted by the Ministry during 1Q 2022. It should be noted that there have been recent changes within the Ministry of Energy, post the civil unrest, and this may lead to some delays in the reviewing of this Agreement.

The Company will update shareholders on any material progress with this Agreement.

West Zhetybai Oilfield - Joint Development Plan:

A small part of the West Zhetybai oilfield has an accumulation that is located on an area that is licenced under two separate contracts - one is held by Jupiter Energy and the other is held under licence by Jupiter Energy's neighbour, Ushkuyu LLP (formerly known as Ansagan Petroleum LLP).

During the Quarter, the parties agreed the parameters for a Joint Field Development Plan for this specific area and it is expected that a Joint Field Development Agreement will be submitted to the Kazakh Ministry of Energy for review during 1Q 2022.

Future 100% Gas Utilisation Plan:

As previously announced, the Company has signed a Framework Agreement with Sleipnir Technologies LLP (Sleipnir), a Kazakh registered company that has a background in oil trading and the design and development of oilfield infrastructure.

Under Phase 1 of the Framework Agreement, Sleipnir is working with Jupiter Energy in a Project Management capacity, assisting in the development of a detailed Project Development Plan to achieve 100% gas utilisation on all three of the Company's oilfields (the Plan). A project team made up of Jupiter and Sleipnir personnel is working with a local Kazakh Institute to complete the documentation of the detailed technical specifications associated with the Plan.