Houston, Oct. 27, 2014 (GLOBE NEWSWIRE) -- BPZEnergy (NYSE: BPZ) (BVL: BPZ), an independent oil and gasexploration and production company, today provided an operationsupdate for Block Z-1. Albacora A18D-ST WellOnline At the Albacora field, the A-18D side track wellwas completed in late September. The well was drilled to atotal measured depth of approximately 12,740 feet and has beenunder production testing to evaluate new deeper oil zones. The known upper oil sands were placed on production togetherwith the new deeper oil sands. The 24-hour peak productionrate during these initial tests was 820 bopd gross, or 418 net toBPZ. During the different sequence of tests, average wellproduction has been approximately 721 barrels of oil per day (bopd)gross, or 368 bopd net to BPZ, over the past 14 days. On apreliminary basis, PLT (Production Logging Tool) tests haveindicated that due to the higher reservoir pressures, the deeperoil sands are currently the dominant producers. Furtheranalysis is underway to optimize the well productivity. Block Z-1 Production Production from the Albacora and Corvina fieldsat Block Z-1 for third quarter 2014 averaged approximately 4,777bopd gross, or 2,436 bopd net to BPZ, which is an 83% increasecompared to the same period last year. Over the past 14 days, grossproduction at Block Z-1 averaged approximately 5,400 bopd, or 2,754bopd net to BPZ. Development DrillingSchedule At the Corvina field, the CX15-10D well iscompleted with results expected in November. The well wasspud on September 14, 2014 and reached targeted measured depth ofapproximately 8,000 feet. The well was cased, cemented, andcompleted in less than six weeks. The Corvina CX15-14D was spud on October 25,2014. Estimated total measured depth of the well is 7,725feet, with results expected in December.
At the Albacora field, the A-27D developmentwell was spud on October 6, 2014. Estimated total measureddepth of the well is 14,500 feet, the deepest well of the ongoingAlbacora drilling campaign, also targeting deeper potential oilzones seen in other Albacora wells. Results are expected byyear-end 2014. Given the discovery of the deeper oil inAlbacora, the next few wells in 2015 are also expected to bedrilled in the same area of the field to continue its developmentappraisal.Albacora Production Optimization As part of the Albacora field evaluation andreservoir management, PLT tests have also been run on the A-26D,A-21D, and A-19D oil wells with the goal to increase production onall three wells. PLT tests provide data on the type of fluidsand rates being produced from different open zones, including thenew deeper oil zones to support the year-end 2014 potentialcertification of new oil reserves at Albacora. The PLT tests on theA-26D and A-19D confirmed the deeper oil sands continue tocontribute most of the production from these two wells and furtheranalysis is underway to optimize well productivity. The PLTtest on the A-21D confirmed that formation water is coming from thebottom sand, and an intervention plan to isolate that waterproducing sand is now being prepared. Manolo Zuniga, President and CEOcommented, "Recent improvements in the Block Z-1development drilling program have enabled new Corvina and Albacoraoil wells to be drilled and completed in a month and a half and twomonths, respectively, which was our original targeted timeline fordrilling and completion. Fourth quarter activity at Block Z-1continues to increase with the drilling of three more oil wells,installation of gas lift on several oil wells, and wellinterventions based on the PLT findings. This activityincludes the ongoing testing of the new deeper oil sands atAlbacora and their potential contribution to year-end 2014production and reserves. As envisioned, the developmentdrilling results this year at both the Albacora and Corvina fieldshave set the stage for continued production and cash flow growth in2015." 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 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 Director, Investor Relations & Corporate Communications BPZ Energy 1-281-752-1240 firstname.lastname@example.org