24/04/2020 - 13:01

ASX intervenes after blowout in junior's oil shares

24/04/2020 - 13:01

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Shares in a West Perth-based oil producer with operations in Kazakhstan have increased 70-fold this week, despite the company shutting down production and the collapse in global oil markets, leading to an ASX intervention.

The Zhetybay Valley in Kazakhstan.

Shares in a West Perth-based oil producer with operations in Kazakhstan have increased 70-fold this week, despite the company shutting down production and the collapse in global oil markets, leading to an ASX intervention.

Jupiter Energy scrip traded at 0.2 cents per share at the close on Tuesday but was worth 15 cents yesterday when the ASX paused trading.

It had reached as high as 35 cents during intraday trading.

Nearly 2.5 million units of the thinly traded stock changed hands on Wednesday, 1,000 times the trading volume of the previous day.

On Thursday, 10 million units were traded.

In responses to the ASX on Wednesday and again on Thursday, Jupiter chairman Geoff Gander said the business was unaware of any undisclosed information that could have led to the big surge.

Jupiter did not respond to a request for comment from Business News, while the ASX said it would not add anything further.

In late March, Jupiter said it would shut down production at its Akkar North and West Zhetybai oil fields in Kazakhstan, a decision it reversed three weeks later after it secured support from a Kazakh oil trader.

“It is hoped there will be a recovery in the oil price in the near term and that normal operations can be established,” Mr Gander said at the time.

“A price of $US40 a barrel is seen as the level required to provide for longer-term stability.

“Support from the company’s noteholders will continue to be required to ensure the company can get through this turbulent period.”

Jupiter published a quarterly report on Thursday, when the company said it was waiting on approvals from the Kazakh government for production.

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