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BPZ Energy Resumes Oil Production at Corvina Field

Posted on: Monday, 5 May 2008, 09:01 CDT

BPZ Resources, Inc. (AMEX:BZP) announced that it has resumed oil production at the CX-11 platform in the Corvina field in offshore Block Z-1 in northwest Peru. The Company restarted production under its long-term testing program on May 2, 2008 and plans to ramp up production to approximately 6,000 barrels of oil per day (bopd).

All three Corvina oil wells, the CX11-21XD, the CX11-14D, and the CX11-18XD will come online gradually, ramping up to approximately 6,000 bopd in the next few days. Production is initially being sent directly to the Company's transportation barge. Once the transport barge reaches its cargo capacity the Company's FPSO will be placed into service so as to produce the field continuously on what constitutes the first FPSO oil operation in Peru.

The CX11-18XD retesting, after the use of tubing-conveyed perforating (TCP) guns, showed an increase to 1,300 bopd in DST #3, which is comparable to similar sands tested in the 21XD and 14D wells. The rates achieved in the DST #2 retest did not show any improvement over the previously announced 4,150 bopd. Final cumulative tests rates on the 18XD are 5,950 bopd, making it the well with the best oil deliverability potential among the three producers. The Company will evaluate whether to work over the 18XD well to further optimize production, in particular to address the cementing issues observed during DST #1.

Manolo Zúñiga, President and Chief Executive Officer, stated, "The 18XD well is another important achievement for the Company as we have now completed our third oil producing well. We will closely monitor our first three oil producers' performance during this initial long-term testing program so as to be able to optimize the field's long-term development plan. More relevant yet for our shareholders is the fact that this first FPSO system in Peru is allowing us to re-establish oil sales from the Corvina field."

About BPZ Energy

Houston based BPZ Energy is an oil and gas exploration and production company which has exclusive license contracts 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 the development of the Corvina oil discovery, the redevelopment of the Albacora oil field, and the exploration of Block XIX, in parallel with, the execution of an integrated gas-to-power strategy, which includes generation and sale of electric power in Peru and the development of a regional gas marketing strategy. 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 21E 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,""will", "anticipate,""indicate,""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 efforts, 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.

Source: Business Wire

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