What an amazing couple of days it’s been for shareholders of Kazakhstan-focused oil play Jupiter Energy (ASX:JPR). Shares rose 1000 per cent yesterday and they are still heading north today.

The stock closed on Tuesday at 0.2c but closed a day later at 5.5c. This was even better than 2020’s previous one day rise record holder — gold junior Predictive Discovery (ASX:PDI) which gained 733 per cent last week.

Today Jupiter advanced another 527 per cent to an intra-day high of 34.5c. It has since edged back to 14.5c, but that is still a further gain of 164 per cent.


Why the surge?

Any oil junior would seem the least likely candidate for such a rise considering the huge fall in oil prices this week.

Jupiter Energy was unable to escape earlier pressure, making the call in late March to shut down production.

But last week it secured a more attractive prepayment proposal from a local trader.

It said the new contract and further cost cutting measures would enable production from the Akkar North and West Zhetybai oil fields to continue.

Jupiter received a please explain letter from ASX yesterday about the rise. The company said it had no explanation other than its news from a week earlier.

Today it released its March quarterly.

Jupiter sold 8,500 barrels of oil for $US117,000 ($185,770) — representing an average price of $US14 ($22) per barrel. But because these are amortised over several months, cash receipts for the quarter were actually nil.

The company said this morning it had cut its workforce by nearly a third and was reviewing its drilling program and field operations.

Jupiter said it hopes to continue production and undertake drilling work, but it will need more money.