HOUSTON, Feb. 2, 2011 (GLOBE NEWSWIRE) -- BPZ Resources, Inc. (NYSE:BPZ) announces the 2011 capital expenditures plan, approximating $50 million, for continued development of the Company's assets in northwest Peru. The majority of the capital budget is expected to be spent on offshore Block Z-1, primarily for the design and construction of an additional production platform for the Corvina oil field; as well as, for injection equipment to be installed on the platform in the Albacora oil field by year-end 2011. The new platform in Corvina, along with the injection equipment for Albacora, is budgeted at approximately $40 million this year. The new platform for Corvina will be installed with the production and injection equipment in 2012. The Company has also budgeted approximately $10 million for two automatic crude oil custody transfer units, improvements to the supply dock at Caleta Cruz and other capital projects.
In addition to capital expenditures, the Company plans to spend and expense approximately $18 million on seismic acquisition in Block Z-1 and $4 million to complete the seismic acquisitions in Blocks XXII and XXIII. At the CX-11 platform in Corvina, the Company plans two or three work-overs of existing wells to optimize oil production. Work-overs are expected to commence in the second quarter, and are budgeted at $3 million each. The Company may work over two or three of the existing oil wells at the Albacora platform in the fourth quarter of 2011 and are also budgeted at $3 million each. Work-overs are recorded as operating expense.
About BPZ EnergyHouston based BPZ Energy is an oil and gas exploration and production company which has exclusive license contracts for oil and gas exploration and production covering approximately 2.2 million acres in four properties in northwest Peru. It also owns a minority working interest in a producing property in southwest Ecuador. The Company is currently executing the development in Block Z-1 of the Corvina oil discovery, as well as the redevelopment of the Albacora oil field, and the exploration of Blocks XIX, XXII and XXIII, in parallel with the execution of an integrated gas-to-power strategy, which includes generation and sale of electric power in Peru and the development of a regional gas marketing strategy. The Company's website at www.bpzenergy.com provides additional information about the Company's plans, including photographs and other information with respect to its operations. Forward Looking Statements This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.These forward looking statements are based on our current expectations about our company, our properties, our estimates of required capital expenditures and our industry. You can identify these forward-looking statements when you see us using words such as "expect," "will", "anticipate," "indicate," "estimate," "believes," "plans" and other similar expressions. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward looking statements. Such uncertainties include the success of our project financing efforts, accuracy of well test results, well refurbishment efforts, successful production of indicated reserves, satisfaction of well test period requirements, successful installation of required permanent processing facilities, receipt of all required permits, and the successful management of our capital expenditures, and other normal business risks. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements.
CONTACT: Greg Smith Director of Investor Relations and Corporate Communications 281-752-1240