Jupiter Energy is considering legal action over a delay in one of its licence extension applications in Kazakhstan.
The company applied for a number of production licences to be continued and has been granted all but one.
Its application for an extension on licence J-50 is being held by the Kazakh Committee of Geology, pending resolution for the allocation of reserves within the well.
The J-50 well is located at the northern end of the Block 31 licence and penetrates the eastern part of the Akkar North accumulation.
A spokesman said: “The western part of the Akkar North field is located within an area licenced to MangistauMunaiGas (MMG).
“Jupiter estimates the reserves attributable to the Akkar North field within the Block 31 permit are approximately 8 million barrels of oil recoverable.
“Jupiter and MMG have been requested by the Ministry of Oil & Gas of Kazakhstan to sign a joint protocol agreeing to the allocation of North Akkar reserves held by MMG and Jupiter.
“Jupiter has been ready to sign this protocol for over a year but MMG has refused to sign apparently due to disagreement between KazMunaiGas NC and Chinese National Petroleum Company, its two shareholders, over this matter.
“The current J-50 Trial Production Licence is in effect until December 29 and the J-50 well will remain in production until that date.
“The company will endeavour to get this matter resolved by the 29 December 2014 expiry date but if not resolved the J-50 well will be shut in from 30 December 2014 and will remain shut-in until the Trial Production Licence has been reissued.
“The company is considering legal action in order to get the matter resolved.”
Jupiter Energy said during the July to September the sale of oil from J-50 represented approximately 22% of the company’s revenue.