HOUSTON, Jan. 4, 2011 (GLOBE NEWSWIRE) -- BPZ Resources, Inc. (NYSE:BPZ) provides an update to its operations in northwest Peru.

Corvina

The Company previously announced that the Corvina field in Block Z-1 entered commercial production on November 30, 2010. During the first month of operation, the permanent production equipment, including the compression equipment, performed as expected. As a result, the Corvina field oil production averaged 4,656 barrels of oil per day (bopd) in December. 

The Petrex-09 rig previously used at the Corvina CX-11 platform is being refurbished and upgraded at the Petrex yard in Talara in order to enhance its capability in preparation for the drilling of an exploration well in the onshore Block XIX.  This upgrade is being performed at no cost to the Company and reduced stand-by rates are being charged during the refurbishment. The Company was able to renegotiate the contract for the Petrex-09 rig, which was due to expire in April 2011. As part of the new agreement, Petrex has agreed to extend the contract to December 2011 and to a significant reduction in stand-by rates. 

Albacora

The A-14XD well in Albacora averaged 988 bopd in December, exiting 2010 in line with management projections. The well is currently producing under extended well testing and gas flaring permits, which expire in the middle of January 2011. In the event the permits are not extended, the well will be shut-in until the Company installs the necessary production equipment on the platform, which is currently scheduled for late in 2011. 

As a result of the previously announced suspension of drilling activities at Albacora, Petrex has suspended the Petrex-18 rig contract and leased the rig to a nearby offshore operator.  The Company then chartered its drilling tender barge, the BPZ-02, to the same operator for approximately one year, to coincide with the time the Company expects to resume drilling at Albacora.