NEW YORK (TheStreet) -- BPZ Resources Inc. (BPZ) rose 16% to $2.13 a share in early morning trading on Wednesday after the company reported production from its new Albacora well along with onshore and offshore drilling updates. As of 10:40 a.m., the stock traded at a volume of 1.36 million compared to its average volume of approximately 581,929.
The company is currently developing drilling at multiple wells at Block Z-1 offshore and is exploring onshore at Block XXIII. BPZ president and CEO Manolo Zuniga said the following in a company statement:
"I'm excited to have entered 2014 with good well results at the Albacora A-18D well, boosting current Block Z-1 gross production levels in excess of 4,900 barrels of oil per day, of which we have a 51% interest. We look forward to continued production growth as we drill additional Z-1 development oil wells.
"On the exploration front, I am pleased that we have started drilling onshore at Block XXIII, and plan to drill onshore at Block XXII later this year where we are targeting both conventional and non-conventional oil plays. In the meantime, preparations are ongoing to drill the selected offshore Block Z-1 exploration prospects mapped with the new 3D seismic."
TheStreet Ratings team rates BPZ Resources as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BPZ RESOURCES INC (BPZ) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."