Houston, Feb. 11, 2014 (GLOBE NEWSWIRE) -- BPZEnergy (NYSE: BPZ) (BVL: BPZ), an independent oil and gasexploration and production company, today provided an operationsupdate, including results from the second well drilled from theCX-15 platform and estimates for the Company's 2014 capitalplan. OPERATIONS UPDATE Offshore Block Z-1 (51% workinginterest) The CX15-2D development well at the Corvinafield was completed at the end of January 2014. This new wellhas produced an average of approximately 775 barrels of oil per day(bopd) gross, or net production to BPZ of approximately 395 bopdover the past seven days with negligible water cut and naturallyflowing. Three intervals totaling approximately 80 feet wereperforated. For the last 24 hours the CX15-2D well hasaveraged gross production of approximately 700 bopd, or netproduction to BPZ of 360 bopd. Current Block Z-1 gross production isapproximately 5,425 bopd, or net production to BPZ of 2,765 bopd,equally divided between the Corvina and Albacora fields. The new Corvina CX15-3D development well wasspud on February 9, 2014 with a targeted total measured depth of7,750 thousand feet and completion of the well expected in April2014. At the Albacora field, the A-19D developmentwell has reached targeted total measured depth of 12,450 feet andlogs are currently being run with completion expected in March2014. Onshore (100% working interest) At Block XXIII onshore, the Caracol 1Xexploration well has reached total depth of 3,450 feet, logs havebeen run to determine testing intervals, and casing has now beenset to test the selected intervals. Access roads and wellsites for the two other exploration drilling locations at BlockXXIII are now completed. 2014 CAPITAL PLAN Offshore (51% workinginterest) The Company's 51% share of Block Z-1 capitalinvestments is budgeted at $71 million, which is expected to befully covered by remaining carry of $81 million under the CarryAgreement with Pacific Rubiales as of December 31, 2013. The2014 capital plan includes development drilling of six wells atCorvina starting with the CX15-3D, and two wells at Albacoraincluding the A-19D, along with associated projects andengineering. Drilling of additional wells at Albacora in 2014is subject to ongoing review of the drilling campaign results.
The necessary permits have now been received forthe Delfin, Piedra Redonda and Raya prospects which have beenremapped with 3D seismic. The process is underway to developthe associated exploration plans and budgets, with expectationsthat Delfin, which is adjacent to Corvina, could potentially bedrilled later this year.The Block Z-1 capital plan is subject to reviewand approval by the partners under the Block Z-1 Joint OperatingAgreement. Onshore (100% working interest) The Company plans to spend approximately $15million in 2014 on capital and exploratory expenditures, excludingcapitalized interest, for onshore Blocks XIX, XXII and XXIII. This includes a three-well shallow drilling campaign at BlockXXIII, already underway, as well as permitting for seismic anddrilling for the three blocks. Exploration drilling at Block XXII is contingentupon receipt of the necessary permits which are expected to beobtained during the second half of 2014, allowing for drilling tostart by late 2014 or early 2015. The table below summarizes the 2014 offshore and onshore capitalplans:
|2014Capital & Exploratory Budget|
|Offshore Block Z-1 (51% BPZ)|
|Corvina CX-15 (6 wells)||$40|
|Albacora (2 wells)||$16|
|Projects,engineering & other||$15|
|Total BPZ NetOffshore||$71|
|Onshore Blocks XXIII, XXII andXIX (100% BPZ)|
|Block XXIII (3 wells)||$8|
|Permitting, engineering &other||$7|
ABOUT BPZ ENERGYHouston-based BPZ Energy, which trades as BPZResources, Inc. under ticker symbol BPZ on the New York StockExchange and the Bolsa de Valores in Lima, is an independent oiland gas exploration and production company which has licensecontracts covering approximately 1.9 million net acres in offshoreand onshore Peru. The Company holds a 51% working interest inoffshore Block Z-1, which it is developing in partnership withPacific Rubiales Energy Corp. The Company also holds 100%working interests in three onshore blocks, where explorationdrilling is underway at Block XXIII. Please visit theCompany's website at www.bpzenergy.com for moreinformation. FORWARD LOOKING STATEMENT This Press Release contains forward-lookingstatements within the meaning of the Private Securities LitigationReform Act of 1995, Section 27A of the Securities Act of 1933 andSection 21E of the Securities Exchange Act of 1934. Theseforward looking statements are based on our current expectationsabout our company, our properties, our estimates of requiredcapital expenditures and our industry. You can identify theseforward-looking statements when you see us using words such as"anticipates," "intends," "will," "expects," and other similarexpressions. These forward-looking statements involve risksand uncertainties. Our actual results could differ materially fromthose anticipated in these forward looking statements. Suchuncertainties include the success of our project financing efforts,accuracy of well test results, results of seismic testing, wellrefurbishment efforts, successful production of indicated reserves,satisfaction of well test period requirements, receipt of allrequired permits, the successful management of our capitalexpenditures, and other normal business risks. We undertakeno obligation to publicly update any forward-looking statements forany reason, even if new information becomes available or otherevents occur in the future. CAUTIONARY STATEMENT REGARDING CERTAININFORMATION RELEASES The Company is aware that certain informationconcerning its operations and production is available from time totime from Perupetro, an instrumentality of the Peruvian government,and the Ministry of Energy and Mines ("MEM"), a ministry of thegovernment of Peru. This information is available from the websitesof Perupetro and MEM and may be available from other officialsources of which the Company is unaware. This information ispublished by Perupetro and MEM outside the control of the Companyand may be published in a format different from the format used bythe Company to disclose such information, in compliance with SECand other U.S. regulatory requirements.
Additionally, the Company's joint venturepartner in Block Z-1, Pacific Rubiales Energy Corp. ("PRE"), is aCanadian public company that is not listed on a U.S. stockexchange, but is listed on the Toronto (TSX), Bolsa de Valores deColombia (BVC) and BOVESPA stock exchanges. As such PRE maybe subject to different information disclosure requirements thanthe Company. Information concerning the Company, such asinformation concerning energy reserves, may be published by PREoutside of our control and may be published in a format differentfrom the format the Company uses to disclose such information, incompliance with SEC and other U.S. regulatory requirements.The Company provides such information in the format required,and at the times required, by the SEC and as determined to be bothmaterial and relevant by management of the Company. TheCompany urges interested investors and third parties to considerclosely the disclosure in our SEC filings, available from us at 580Westlake Park Blvd., Suite 525, Houston, Texas 77079; Telephone:(281) 556-6200. These filings can also be obtained from theSEC via the internet at www.sec.gov. ###
CONTACT: A. Pierre Dubois Investor Relations & Corporate Communications BPZ Energy 281-752-1240 email@example.com