HOUSTON--(BUSINESS WIRE)--BPZ Energy, Inc. (AMEX:BZP) announced today the results of tests conducted on the CX11-21XD well in the Corvina field located offshore northwest Peru. The well tested at a rate of 40 million cubic feet per day (MMcfpd) of natural gas and 3,150 barrels of crude oil per day (bopd).
A total of four Drill Stem Tests (DST) were conducted on separate potential pay zones covering 413 feet from the Lower and Upper Zorritos formations.
DST #4 tested 130 feet of pay in the top portion of the Upper Zorritos at approximately 40 MMcfpd of natural gas with 1,500 psia of well head pressure. The gas is essentially pure methane with no impurities, making it ideal for the proposed 160 MW power plant project, to be located close by in the town of Nueva Esperanza and which will require 40 MMcfpd of feedstock.
In addition, during DST #3, the well produced crude oil from 45 feet of opened pay from the middle portion of the Upper Zorritos at the rate of 3,150 bopd with 1,000 psia of well head pressure and zero water. This sweet crude oil has an approximate API specific gravity of 22. The Company may go back to this zone to test additional unopened intervals that also appear to contain crude oil.
DST #2 opened 138 feet of potential pay in the bottom section of the Upper Zorritos, but yielded inconclusive results due to mechanical problems during the test. The Company is of the opinion that this zone may still contain commercial quantities of hydrocarbons and additional testing may be performed at a later date.
DST #1 tested 100 feet of potential pay in the Lower Zorritos. Although it did produce natural gas, it also produced formation water in quantities large enough to consider the zone non-commercial in this part of the field. The Company remains optimistic that gas is present in commercial quantities in this formerly untested formation as evidenced in logs from three other previously drilled Corvina wells.
The well testing results indicate that the CX11-21XD well bears a striking resemblance to the 8X-2 well drilled by Tenneco in the Albacora oil field and that tested 4,365 bopd and 21 MMcfpd with 893 barrels of condensate per day. The Company plans to redevelop the Albacora field in the near future.
The Company next plans to workover the shut in CX11-16X well that had previously tested 16.6 MMcfpd, followed by the drilling of its second new well in the Corvina field, to prove up additional gas reserves and appraise the oil discovery. The Company expects to obtain independently certified reserves after the workover is completed.
Manolo Zúñiga, President and CEO of BPZ Energy, said: “This is a historic event for BPZ Energy. These test results exceeded our expectations for the well in terms of potential daily production of natural gas and crude oil, which on a combined basis approximates 10,200 barrels of oil equivalent per day. The tested natural gas rates help validate the proposed gas-to-power project, while there are nearby ready markets for crude oil in Peru. We will begin securing the equipment necessary to begin oil production at the earliest possible date.” He went on to say: “The successful completion of this initial phase of our first project encourages us to continue pursuing our strategy of diversifying our asset base within the many projects we have in our portfolio.”
About BPZ Energy
Houston-based BPZ Energy, Inc. is an oil and gas exploration and production company with properties in northwest Peru and southwest Ecuador. It is executing its first project, 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. BPZ 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 working interest in a producing property in southwest Ecuador. 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.
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, well refurbishment efforts 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”, “potential pay” and “commercial quantities” 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.
BPZ Energy, Inc., Houston
Manolo Zúñiga, 281-556-6200
Investor Relations Advisor
Brad Holmes, 713-591-3138