BPZ Energy Announces Final Tests Results of CX11-14D Well
BPZ Energy, Inc. (AMEX:BZP) today announced the Company has completed all seven drill stem tests (DST) on the CX11-14D well in the Corvina field of offshore Block Z1 in northwest Peru. The Company tested a cumulative total of 104 million cubic feet per day (mmcf/d) of gas and 2,400 barrels of oil per day (bopd).
The first six tests were conducted in the Upper Zorritos formation, with the first two testing the oil zone and the other four the gas zone, while the seventh test targeted the Cardalitos formation located immediately above the Upper Zorritos. No formation water was produced in any of the seven tests and the quality of the tested oil and gas was similar to that of the Company’s other two Corvina wells.
As previously announced, DST #1 and #2 cumulatively tested 2,400 bopd. The Company also previously reported that DST #3 tested 25 mmcf/d but is revising this result to 26 mmcf/d.
DST #4 tested a set of low resistivity sands that resulted in minor indications of gas. As expected, DST #5 and #6 tested the bulk of the gas from two sets of gas sands at the top of the Upper Zorritos formation, with DST #5 recording rates of 36 mmcf/d and DST #6 testing an additional 42 mmcf/d. DST #7 tested the Cardalitos formation at 0.1 mmcf/d.
Manolo Zúñiga, President and Chief Executive Officer stated, “We considered the CX11-14D well a success after the first three tests. Obviously the additional test results are very exciting, and make this the most productive well of the three we have completed thus far with a cumulative test rate of 117.5 million cubic feet equivalent per day. The production capacity of the Corvina field is now at 8,300 bopd and 184 mmcf/d.” Mr. Zúñiga continued, “We also tested the Cardalitos formation that, while not producing commercial volumes of gas for offshore operations, encourages us to keep evaluating its potential in our onshore blocks.”
The Company will now dual complete the CX11-14D well. Final oil and gas tests will be performed after the CX11-14D is completed to leave the well ready for production. The Company will then start drilling operations on the CX11-18XD well.
About BPZ Energy, Inc.
Houston based BPZ Energy, Inc. is an oil and gas exploration and production company which has exclusive rights and license agreements for oil and gas exploration and production covering approximately 2.4 million acres in four properties in northwest Peru. It also owns a minority working interest in a producing property in southwest Ecuador. The Company is currently executing an integrated gas-to-power strategy, which includes generation and sale of electric power in Peru and sales of gas into Ecuador for third-party power generation, in parallel with the development of the Corvina oil discovery and the redevelopment of the Albacora oil field. The Company’s website at www.bpzenergy.com provides additional information about the Company’s plans, including photographs and other information with respect to its operations.
Forward Looking Statements
This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 27E of the Securities Exchange Act of 1934. These forward looking statements are based on our current expectations about our company, our properties, our estimates of required capital expenditures and our industry. You can identify these forward-looking statements when you see us using words such as “expect,”"anticipate,”"estimate,”"believes,”"plans” and other similar expressions. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward looking statements. Such uncertainties include the success of our project financing effort, including final documentation and execution of debt financing documents with IFC, accuracy of well test results, well refurbishment efforts, successful production of indicated reserves, and the successful management of our capital development project and other normal business risks. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements.
The U.S. Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only “Proved” reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The Company is prohibited from disclosing other categories of reserves in its SEC filings. We use certain terms in this press release such as “tested”, “barrels of oil per day” and “cubic feet of gas” or similar terms suggesting “Indicated”"Probable” or “Possible” oil and gas reserves that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged 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. You can also obtain these filings from the SEC by calling 1-800-SEC-0330.