Houston, Sept. 22, 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 , "We are pleased to havebrought the Corvina CX15-7D development oil well online in lessthan seven weeks, an improvement in our drilling efficiency. This improvement in drilling and completion allowed us to spud thenew CX15-10D development well earlier than anticipated, improvingthe possibility of completing a sixth Corvina well by yearend. At the Albacora field, the A-18D side track well iscurrently being completed as an oil producer, after which we willspud the A-27D development well. In terms of exploration, we are wrapping up thetesting program on the three shallow onshore Block XXIII wells, andwe expect to share these results along with next steps inOctober. At offshore Block Z-1 we continue our plans to drillthe Delfin prospect by the middle of next year, while we continueto advance other exploration projects like Piedra Redonda and Raya,for which we have drilling permits approved for all three. While production rates will be lower thisquarter at Block Z-1, we expect that production from new wells andimproved rates resulting from the gas lift program will allow us toexit this year with improved levels of production and cashflow." Offshore Block Z-1 (51%BPZ) Development DrillingCampaign The new Corvina CX15-7D development oil well wascompleted on September 9, 2014. The well has averaged grossproduction of 640 barrels of oil per day [bopd], or 326 bopd net toBPZ for the last ten days with no formation water. During thelast 24 hours gross production was approximately 700 bopd, or netproduction to BPZ of 357 bopd.
The new CX15-10D development well was spud onSeptember 14, 2014. The CX15-10D will have a targetedmeasured depth of approximately 8,200 feet, and is expected to becompleted by November 2014.At Albacora, the A-18D side track well iscurrently being completed and production results will be reportedin early October. The completion is targeting the known oil zones,as well as new deeper zones that are also producing or seen inother Albacora wells. The A-27D development well is scheduled to bedrilled next, which will be located near the crest of the structuresimilar to where the A-19D producing oil well is located. Production Optimization Recent gross production at Block Z-1 wasapproximately 5,000 bopd, or 2,550 bopd net to BPZ. Thirdquarter to date 2014 gross production has averaged approximately4,680 bopd, or 2,387 bopd net to BPZ, through September 21,2014. While the CX15-7D has recently come online,production has been temporarily impacted due to scheduled work onseveral oil wells during the third quarter. This workincluded the sidetrack on the A-18D well which required it to beshut in, but is expected to come back online shortly. TheCX15-1D is also shut in as the well is being intervened to prepareto perforate the deeper unopened oil sand that is also producing inthe new CX15-7D well. The CX15-3D and the Albacora A-21D haverecovered approximately 36% of their prior combined oil production,producing 406 bopd, or 207 bopd net to BPZ, with the assistance oftemporary gas lift systems. The CX15-3D well has recentlyproduced approximately 224 bopd gross, or 114 bopd net to BPZ, withthe A-21D well producing about 182 bopd gross, or 93 bopd net toBPZ. To further optimize production on these two wells, aproduction logging tool (PLT) will be run to verify the watersource to determine how best to optimize their productivity. The PLT is expected on location next month, and will be used onother wells, including the Albacora A-26D, to evaluate theirperformance.
Permanent gas lift installations and facilitieswill then be placed on the three platforms in the fourth quarterand continuous gas lift operations will begin. Seven wells intotal are being targeted for the gas lift program to increaseproduction levels, including the CX15-1D, CX15-3D, and theA-21D.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 REGARDING CERTAININFORMATION RELEASESThe 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 Director, Investor Relations & Corporate Communications BPZ Energy 1-281-752-1240 firstname.lastname@example.org