29/04/2020 - 10:57

Jupiter chief sells after big price surge

29/04/2020 - 10:57

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Jupiter Energy chief executive Geoff Gander sold all of his stock in the West Perth-based, Kazakhstan-focussed oil junior last week after a surprise 70-fold surge in the company’s share price.

Jupiter has operations in Kazakhstan.

Jupiter Energy chief executive Geoff Gander sold all of his stock in the West Perth-based, Kazakhstan-focussed oil junior last week after a surprise 70-fold surge in the company’s share price.

Mr Gander disposed of about 810,000 shares held through his superannuation and related entity Victoria Pty Ltd, earning about $167,000 at an average price of 19 cents.

Guernsey Island-based Central Asian Oil Holdings also sold about a million shares last week for consideration of $334,773, a substantial holding form indicated, implying a price of more than 30 cents per share.

The Jupiter share price rocketed last week in mysterious circumstances.

On Tuesday, about 2,000 shares were traded and the price closed at 0.2 cents per share.

On Thursday, 10 million units were traded, and the share price was 15 cents per share when trading was paused, after rallying to highs of more than 30 cents each.

Responding to two ASX price queries, the company said it did not know what had caused the big lift.

The big share surge came amid unique circumstances.

It coincided with an astonishing fall in oil prices, with West Texas crude trading at a negative price for periods because of excess supply and limited storage capacity.

Jupiter had shut production temporarily at its Kazakh operations due to a low oil price in March but reopened thanks to an improved deal with a local oil trader.

The company’s latest quarterly shows a $US 10 million ($16 million) loan facility led by Waterford Petroleum, which also claims to hold 30 per cent of the company.

About $6.9 million has been drawn from the facility, which is repayable on 1 July 2021.

The stock remains in suspension.

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