Houston, Oct. 30, 2014 (GLOBE NEWSWIRE) -- BPZEnergy (NYSE: BPZ) (BVL: BPZ), an independent oil and gasexploration and production company, today provided an operationsupdate regarding the 2014 exploration campaign at onshore BlockXXIII. Onshore Block XXIII (100% BPZ; 200,000acres) Three onshore shallow exploration wells, rangingin depth from 3,500 to 3,800 feet, have been drilled at Block XXIIIduring 2014. These wells targeted the Caracol, El Cardo, andPiedra Candela prospects, which are on a six-mile trend. Allthree wells tested dry gas from the Mancora formation. TheCaracol 1X well also recovered some light oil from the Heathformation and also tested dry gas from the Zorritosformation. The Piedra Candela 3X exploratory well reached atotal depth of 3,515 feet. The well is located at thenortheastern tip of Block XXIII near Block XIX (100% BPZ; 500,000acres), and tested a combined 4.1 million cubic feet per day(mmscfpd) from two zones that were stimulated. Internalvolumetric estimates for the Piedra Candela discovery are up to 39billion cubic feet (Bcf) of gas, assuming the prospect is full tothe spill point. The Caracol 1X and El Cardo 2X wells tested 1.5and 0.3 mmscfpd, respectively. Internal volumetric estimatesfor the Caracol and El Cardo discoveries are up to 34.9 Bcf and upto 10.1 Bcf of gas, respectively, assuming the prospects are fullto the spill point. The Company will pursue a long term testingprogram in these Block XXIII prospects, starting with PiedraCandela, and potentially sell the tested gas under a pilot programto the local communities. The Company is in preliminarydiscussions with a local compressed natural gas (CNG) distributorto establish terms of the transaction, including sales volumes andpricing. Additional appraisal wells could be included in thelong term testing program. The Company has already receivedthe long term gas testing permit.
This is the first time that the Mancoraformation has tested gas onshore. Offshore, the Mancoraformation tested gas from the C-18X well drilled by a previousoperator in the Piedra Redonda field at Block Z-1. This wellis approximately 26 miles from the Piedra Candela 3X well. Inaddition, between the Piedra Candela and Piedra Redonda discoverygas wells, logs from several onshore exploration wells drilled byprior operators in Block XXIII had strong evidence of gas pay inthe same Mancora formation, which could potentially define aregional Mancora gas play. A 2010 report prepared byNetherland, and Sewell & Associates, Inc. provided anassessment based on SPE guidelines, that prospective gas resourcescould exceed 5 trillion cubic feet (TCF) in the Mancora gasplay.While the Company continues to explore andappraise the Mancora gas play which will require additional wellsand studies, the Company is also reviewing other avenues for largerscale commerciality from development of current and future onshoregas discoveries. This could include revenue and cash flowfrom broader CNG sales, micro or mini LNG projects, the Company'spreviously announced gas to power project, a future Peruviannorthern gas pipeline project being promoted by the Government, andgas exports to Ecuador. Furthermore, the Company continues to work onthe environmental permits to also be able to drill the Eocene oilprospects mapped in the southern section of Block XXIII, which isalso found below the Mancora formation in Piedra Redonda. Manolo Zuniga, President and CEOcommented, "We are excited about the progress being madewith our onshore exploration program at Block XXIII, including ourpotential future first gas sales, which could provide economicbenefit while we continue testing these discoveries. BlockXXIII results are also encouraging with respect to what we may findat our bordering Block XIX, where we plan on acquiring additional3D seismic, as well as Piedra Redonda, which has already tested gasand could also contain oil below. This activity onshore further defines ourregional gas strategy, potentially anchored by the Block Z-1Corvina gas to power project. Development of these gasprojects will provide the needed local and export markets for ourprospective gas potential, while helping meet the energy needs ofthe local communities in the region. Commercialization of thegas onshore and offshore would also provide us the ability to bookgas reserves and obtain additional cash flow."
ABOUT BPZ ENERGYBPZ 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 100% working interests inBlocks XIX, XXII and XXIII which total 1.6 million acres. Insouthwest 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 prospective resources included in this press release. We may use certain terms in this press release such as"prospective" resources which imply the existence of quantities ofresources which the SEC guidelines strictly prohibit U.S. publiclyregistered companies from including in reported reserves in theirfilings with the SEC. With respect to "probable" and"possible" reserves, we are required to disclose the relativeuncertainty of such classifications of reserves when they areincluded in our SEC filings. The definition of prospectiveresources has been excerpted from the Petroleum ResourcesManagement System approved by the Society of Petroleum Engineers(SPE) Board of Directors, March 2007. Prospective resourcesare those quantities of petroleum estimated, as of a given date, tobe potentially recoverable from undiscovered accumulations byapplication of future development projects. Prospectiveresources have both an associated chance of discovery and a chanceof development. Prospective resources are further subdividedin accordance with the level of certainty associated withrecoverable estimates assuming their discovery and development andmay be sub-classified based on project maturity. Further, thereserves estimates contained in this press release are not designedto be, nor are they intended to represent, an estimate of the fairmarket 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 email@example.com