Houston, Feb. 9, 2015 (GLOBE NEWSWIRE) -- BPZEnergy (NYSE: BPZ) (BVL: BPZ), an independent oil and gasexploration and production company, today announced the results ofan independent evaluation of the Company's certified year-end 2014oil reserves at offshore Block Z-1. The following discussion includes BPZ Energy's51% interest in oil reserves and associated production for theAlbacora and Corvina fields at Block Z-1. Oil reserves arepresented under the usual categories of proved developed producing(PDP), proved developed non-producing (PDNP), proved undeveloped(PUD), total proved (P1), probable (P2), and possible (P3) reserveestimates. These oil reserve estimates were prepared by theCompany's independent reserve auditors Netherland Sewell &Associates, Inc. (NSAI). No gas reserves have been certified by theCompany under U.S. Securities and Exchange Commission (SEC)standards, as a commercial market is still under development. The Company continues to develop a gas strategy to supply naturalgas to the regional market and for a multi-country project. Further, the reserve report figures do notinclude contingent resources of the Company's other Z-1 fields suchas Delfin and Piedra Redonda, nor do they include contingentresources at the Company's other development blocks. A fullpresentation of proved oil reserves estimated in accordance withSEC rules will be included in the 2014 annual report on Form 10-K,expected to be filed in March 2015. BPZ Energy reported net proved reserves of 13.6million barrels of oil (Mmbo) as of December 31, 2014. The2014 reserve report used a $99.65 per barrel price, which is the12-month unweighted arithmetic average of the first-day-of-themonth contract price for each month in the period January throughDecember 2014. A Form 8-K is being filed which will include acopy of this release and the NSAI reserve letter. Manolo Zúñiga, president and CEO of BPZEnergy commented, "Our 2014 reserve report reflects thefirst full year of our reinitiated drilling campaign at the Corvinaand Albacora fields since acquiring and interpreting 1,600 squarekilometers of 3D seismic at Block Z-1 and installing the newCorvina CX-15 platform. Much progress has been made on thegeologic interpretation and development of these two oil fieldsbased on the data gathered during 2014. We believe that focusing on the development ofthe new deeper oil in Albacora and the southwest extension ofCorvina could provide us further production and reservegrowth. Last year's drilling campaign allowed us to increasethe 2014 year-end ratio of proved developed to total provedreserves to 31% from 20% at the end of 2013. We were alsoable to convert P2 locations into PUDs, allowing us to start 2015with a multi-year inventory of 19 PUD locations and strong evidenceof our asset potential at Block Z-1, where we continue appraisal ofthe other Z-1 prospects."
The following table provides a summary of BPZ Energy's 51%interest in Block Z-1 oil reserves.
|BlockZ-1 Net Oil Reserves (Mmbo)|
|Proved Developed Producing (PDP)||3.0||0.9||3.9|
|Proved Developed Non-producing (PDNP)||-||0.3||0.3|
|Proved Total (P1)||9.8||3.8||13.6|
The CX15-8D well was recently completed withresults expected later this month. The CX15-8D well isincluded in the 2014 reserve report as a PUD. This well helpsextend the Corvina field to the southwest where PUD locations havebeen assigned higher average EURs as this area should enjoy higheroriginal reservoir pressures than the Corvina infill wells andthese locations are away from the gas cap.In this respect, the new CX15-9D well was spudon February 6, 2015 in the southwest area of Corvina with resultsexpected in April. Targeted measured depth of the CX15-9Dwell is 9,287 feet. Albacora At year-end 2013 there were four PUD locationsat the Albacora field. These four PUDs were drilled in 2014and established the oil water contact boundary for the Mid-Zorritosformation which allowed for the addition of proven locations in thesoutheast area of the field. The recent A-27D well isincluded in the PDNP category for 2014 given the well came onlineearly in 2015, and may further extend the Proved area of thefield. As a result of this timing, any potential for newdeeper Zorritos oil found in the well has not been fullyincorporated into the year-end 2014 report. Given these field extensions, total PUDs atyear-end 2014 were six compared to the four PUDs at year-end2013. Based on results of wells drilled so far at the field,the EURs for PDPs and PUD wells are estimated to averageapproximately 775,000 barrels and 1.1 Mmbo, respectively. However, these estimates do not consider the potentialcontribution of the deeper Zorritos oil sands. In thisrespect, the A-22D well is currently being drilled with resultsexpected in April. Targeted measured depth of the A-22D wellis 14,445 feet, which will also target the Mid and Lower Zorritossands. Probable & PossibleReserves As a result of the latest EURs for PUDlocations, probable volumes decreased to 20 Mmbo. Totalprobable locations were nine at Corvina and six at Albacora, withEURs of approximately 1.7 Mmbo and 1.4 Mmbo per well, respectively.
Possible reserves grew to 24 Mmbo due togeologic interpretation changes at Corvina. Total possiblelocations amounted to 10 at Corvina and 15 at Albacora withapproximate EURs of 1.9 Mmbo and 1.1 Mmbo per well,respectively.Zuniga concluded, "Given thepotential impact of the deeper Zorritos on the Albacora reserves, acomprehensive review is currently underway at the A-27D well whichcould favorably impact its future oil reserves, as well as thecorresponding EURs of future wells at the field. Aspreviously announced, other offshore well optimization work isunderway, including opening prospective deeper Albacora oil sandsin other wells, and the installation of gas lift facilities on allthree platforms. Onshore at Block XXIII, we are working on agas sales program as part of long-term well testing program. Similarly, offshore we continue our efforts to pursue monetizationof the known gas resources at Corvina and Albacora. We alsohave a large set of exploratory onshore and offshore prospects thatcould favorably impact the Company's reserve and production growthin the future. While estimates reflect rising oil pricesthroughout the year, given the current low commodity priceenvironment we are executing in a number of areas to manage ourcash expenditures. This includes further reducingadministrative costs, reducing operating costs with our partner,reaching out to the Peruvian oil and gas authorities fordiscussions on extensions for work commitments, assessing theappropriate capital budget for our portfolio of assets, and workingwith our advisors on financing alternatives." ABOUT BPZ ENERGY BPZEnergy is an independent oil and gas exploration and productioncompany with license contracts covering 1.9 million net acres infour blocks located in northwest Peru. Current operations inthese blocks range from early-stage exploration toproduction. The Company holds a 51% working interest inoffshore Block Z-1, where development drilling is currentlyunderway at the Corvina and Albacora fields with joint venturepartner Pacific RubialesEnergy Corp. (TSX: PRE) (BVC: PREC) (BOVESPA: PREB). Onshore, the Company holds 100% working interests in Blocks XIX,XXII and XXIII which total 1.6 million acres. In southwestEcuador, the Company owns a non-operating net profits interest in aproducing property. BPZ Energy trades as BPZ Resources, Inc.on both the New York Stock Exchange and the Bolsa de Valores inLima 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,outcome of our financing alternatives and discussions withgovernmental authorities, and other normal business risks. Weundertake no obligation to publicly update any forward-lookingstatements for any reason, even if new information becomesavailable or other events occur in the future.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 from disclosing estimates ofoil and gas resources that do not constitute "reserves" in our SECfilings, including any estimates of prospective resources includedin this press release. We may use certain terms in thispress release such as "prospects," "prospective" resources and"estimated gross ultimate recoveries" which imply the existence ofquantities of resources which the SEC guidelines strictly prohibitU.S. publicly registered companies from including in reportedreserves in their filings with the SEC. In addition, Probable and Possible reserves areby their nature more speculative than estimates of Proved reservesand are subject to greater uncertainties, and accordingly thelikelihood of recovering those reserves is subject to substantiallygreater risk. Prospective resources are those quantities ofpetroleum estimated, as of a given date, to be potentiallyrecoverable from undiscovered accumulations by application offuture development projects. 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 resourceshave both an associated chance of discovery and a chance ofdevelopment. Prospective resources are further subdivided inaccordance with the level of certainty associated with recoverableestimates assuming their discovery and development and may besub-classified based on project maturity.
Statements of reserves and other indications ofresources used in this press release are only estimates and may notcorrespond to the ultimate quantities of oil and recovered. Further, the reserves estimates contained in this press release arenot designed to be, nor are they intended to represent, an estimateof 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 1-281-752-1240 firstname.lastname@example.org