Houston, July 31, 2014 (GLOBE NEWSWIRE) -- BPZEnergy (NYSE: BPZ) (BVL: BPZ), an independent oil and gasexploration and production company, today provided the followingoperations update. Manolo Zuniga, President and CEO of BPZEnergy commented, "Our development drilling programcontinues with two new wells having come online in July, the newCX15-7D development well has been spud, and the Albacora A-18Dsidetrack well is also underway. As we previously mentioned,the A-18D well is being sidetracked to restore oil production whilealso targeting deeper prospective zones seen in this and otherAlbacora wells, including a new oil zone that is currently beingtested on the recently completed A-26D well. Plans alsoinclude intervention of two recently drilled oil wells toreestablish production that has been temporarily lost, affectingour production ramp up. Onshore, we are working to finishtesting the initial three exploration wells drilled in BlockXXIII. We also have a new member on our managementteam. I am pleased to welcome Mr. Gonzalo Ruiz as our newVice President of Operations with over 30 years of experience inthe international oil and gas industry. Gonzalo will haveresponsibility for all operations in Peru and Ecuador." Offshore Block Z-1 (51%BPZ) Production For the second quarter ended June 30, 2014,production from offshore Block Z-1 averaged approximately 5,134barrels of oil per day (bopd) gross, or 2,618 bopd net to BPZ. This compares to 2,792 bopd of gross production, or 1,424bopd net to BPZ in the second quarter of 2013. Third quarter to date 2014 gross production hasaveraged approximately 4,700 bopd, or 2,397 bopd net to BPZ,through July 30, 2014. This is lower than expected due to theloss of production from the A-18D while it is being sidetracked andtwo shut in wells that require intervention. During the monthof June, these three oil wells produced a total of approximately1,500 bopd gross or, 767 bopd net to BPZ.
Production as of July 30, 2014 was approximately5,000 bopd gross, or 2,550 net to BPZ.New Wells Online at Albacora and CorvinaFields The new Albacora A-26D development well wascompleted on July 12, 2014 and the well has averaged grossproduction of 1,000 barrels of oil per day (bopd), or 531 bopd netto BPZ for the past fourteen days. For the last 24 hours theA-26D well has averaged gross production of approximately 900 bopd,or net production to BPZ of 459 bopd. This production iscoming from a new deeper oil zone previously untested in Albacorawhich is being evaluated now, while the other known oil zones areexpected to be placed on production once the ongoing evaluation ofthe new deeper zone is completed. The new Corvina CX15-5D development wascompleted on July 6, 2014 with the well averaging gross productionof 690 bopd, or 352 bopd net to BPZ for the past fourteendays. For the last 24 hours the well has averaged grossproduction of approximately 660 bopd, or net production to BPZ of337 bopd. New Corvina CX15-7D Spud The new CX15-7D development well was spud onJuly 29, 2014. The well has a targeted measured depth of8,500 feet and is expected to be completed by October 2014. A-18D Sidetrack and WellInterventions Work on the Albacora A-18D ST (side track) wellhas begun and the well is therefore not producing. Because of the new oil zone found in deeper sands on theAlbacora A-26D well, the A-18D ST will be drilled to a depth of13,600 which is up to 1,000 feet deeper than the original A-18Dwell depth. The well is expected to be completed by lateSeptember 2014. In early July the Albacora A-21D well and theCX15-3D were shut in due to high water production. Preliminary well interventions have been agreed to with our partnerto isolate the respective water producing sands to potentiallyrestore oil production to both wells during the currentquarter.
Onshore Block XXIII (100%BPZ)Testing on the initial three-well explorationprogram at Block XXIII continues and is expected to be completed bythe end of September 2014. The testing program aims atevaluating the prospective zones identified in the Mancora, Heath,and Zorritos formations. New Vice President ofOperations Mr. Gonzalo Ruiz joined BPZ Energy in July 2014as Vice President of Operations. He has over 30 years ofexperience in the oil and gas industry, including over 25 yearsworking with Occidental Petroleum in various roles, more recentlyas Vice President & General Manager for Bolivianoperations. Beyond the U.S., his international careerincludes operational leadership roles in Ecuador, Colombia, Syria,Oman, Yemen, China, and Bangladesh. Gonzalo received hisBachelor's degree in Petroleum Engineering and his MBA from theUniversity of Texas, in Austin, Texas. Conference Call for Second Quarter 2014Results The Company will host a conference call and livewebcast to discuss results for the second quarter ended June 30,2014 on Friday, August 8, 2014, at 10:00 a.m. CDT (11:00 a.m.EDT). The event may be accessed via the Investor Relations,Events & Presentations section of the Company's website at www.bpzenergy.com, or byaccessing the following dial-in numbers: US and Canada Dial-In: (877) 293-5457 International Dial-In: (707)287-9344 A replay of the call will also be available at the InvestorRelations section of the Company's website About BPZ Energy BPZ Energy is an independent oil and gasexploration and production company with license contracts covering1.9 million net acres in four blocks located in northwestPeru. Current operations in these blocks range fromearly-stage exploration to production. The Company holds a51% working interest in offshore Block Z-1, where developmentdrilling is currently underway at the Corvina and Albacorafields. Onshore the Company holds three 100%-owned blockswith exploration drilling currently underway at Block XXIII. In southwest Ecuador, the Company owns a non-operating net profitsinterest in a producing property. BPZ Energy trades as BPZResources, Inc. on both the New York Stock Exchange and the Bolsade Valores in Lima under ticker symbol "BPZ". Please visit 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. These forwardlooking statements are based on our current expectations about ourcompany, our properties, our estimates of required capitalexpenditures and our industry. You can identify theseforward-looking statements when you see us using words such as"will," "expected," "estimated," and "prospective," and othersimilar expressions. These forward-looking statements involverisks and uncertainties.
Our actual results could differ materially fromthose anticipated in these forward looking statements. Suchuncertainties include successful operation of our new platform inCorvina, the success of our project financing efforts, accuracy ofwell test results, results of seismic testing, well refurbishmentefforts, successful production of indicated reserves, satisfactionof well test period requirements, successful installation ofrequired permanent processing facilities, receipt of all requiredpermits, the successful management of our capital expenditures, andother normal business risks. We undertake no obligation topublicly update any forward-looking statements for any reason, evenif new information becomes available or other events occur in thefuture.Cautionary Statement RegardingCertain Information Releases The U.S. Securities and Exchange Commission(SEC) permits oil and gas companies, in their filings with the SEC,to disclose only "reserves" that a company anticipates to beeconomically producible by application of development projects toknown accumulations, and there exists or is a reasonableexpectation there will exist, the legal right to produce, or arevenue interest in the production, installed means of deliveringoil and gas or related substances to market, and all permits andfinancing required to implement the project. We are prohibited fromdisclosing estimates of oil and gas resources that do notconstitute "reserves" in our SEC filings, including any estimatesof contingent and prospective resources included in this pressrelease. With respect to "probable" and "possible" reserves,we are required to disclose the relative uncertainty of suchclassifications of reserves when they are included in our SECfilings. Further, the reserves estimates contained in this pressrelease are not designed to be, nor are they intended to represent,an estimate of the fair market value of the reserves. 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 thewebsites of Perupetro and MEM and may be available from otherofficial sources of which the Company is unaware. Thisinformation is published by Perupetro and MEM outside the controlof the Company and may be published in a format different from theformat used by the Company to disclose such information, incompliance with SEC and 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 theformat required, and at the times required, by the SEC and asdetermined to be both material and relevant by management of theCompany. The Company urges interested investors and thirdparties to consider closely the disclosure in our SEC filings,available from us at 580 Westlake Park Blvd., Suite 525, Houston,Texas 77079; Telephone: (281) 556-6200. These filings canalso be obtained from the SEC via the internet at www.sec.gov. ###
CONTACT: A. Pierre Dubois Investor Relations & Corporate Communications BPZ Energy 1-281-752-1240 firstname.lastname@example.org