Jupiter Energy's shares plunged Thursday after the company widened its losses in the second half of 2012.

The company reported a $2.7m consolidated loss for the period, up from $2.0m the previous year, according to an annual financial statement.

At the end of the year, the group's cash position fell to $3.9m compared to $4.5m in 2011.

However, production soared to 77,000 barrels of oil from 11,739 the year earlier.

Jupiter said it has received a trial production licence from the authorities in Kazakhstan that will allow the group to produce form the J-51 and J053 wells for up to three years.

"The company went through a very productive six month period," the group said in a statement, adding that it plans to release an updated competent persons report (CPR) reassessing the firm's reserves and resources.

"The drilling results continue to confirm the prospectivity of the Block 31 permit [in Mangistau Oblas] and it is expected that the CPR will provide an independent confirmation of the current reserve base.

"Whilst the delays in some of the well testing operations have been frustrating, the goal of developing Jupiter Energy into a full cycle [exploration and production] company with a meaningful production profile and sizeable [proven plus probable] reserves base remains on track."

RD

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