BPZ Energy Provides Block Z-1 Operations Update and Announces Year-End 2012
HOUSTON, Feb. 28, 2013 (GLOBE NEWSWIRE) -- BPZ Energy (NYSE:BPZ) (BVL:BPZ), an
independent oil and gas exploration and production company, today announced an
update to Block Z-1 operations as well as year-end 2012 oil reserves.
Corvina CX-15 Drilling
Preparations for the new CX-15 development drilling campaign continue with
some delays deemed necessary to make adjustments to the platform's draft
(submerged depth). As a result, the first well spud is expected to occur
within three to six weeks, depending on progress, as well as weather and sea
conditions. Targeted depth of the first CX-15 well, named 4D, will be
approximately 6,700 feet subsea.Conventional cores of the reservoir rocks
will also be cut during drilling operations.
Corvina CX-11 Workovers
The workover campaign at the CX-11 platform has resumed with work currently
underway at the 14D well, which will be followed by a workover on the 15D
well.Other CX-11 wells are under review for potential workovers during 2013.
Manolo Zúñiga, President and CEO of BPZ Energy, commented, "First drilling at
the CX-15 is taking longer than anticipated due to the usual learning curve
on starting up a new platform, which in our case has required us to make
certain adjustments to the platform's draft. It is important that our team
follow all the recommended engineering and safety measures during the startup
phase of thismulti-well drilling campaign, which includes commissioning all
the production equipment and interconnecting the CX-11 and CX-15 platforms
with four production lines."
"Aiming at increasing and optimizing production at Corvina, we are excited
that we will soon begin drilling from the CX-15 buoyant tower as well as
having reinitiated the CX-11 workover campaign, and with both Corvina
platforms interconnected our reservoir management capability is also expected
to improve. Meanwhile, interpretation of the new 3D seismic data at Corvina
is ongoing,allowing us to continue refining the future CX-15 development
drilling locations. Furthermore, the 3D seismic data acquired in the rest of
Block Z-1 is allowing us todefine our future offshore exploration program,
andour return to drilling at Albacora."
The 2012 year-end total net proved crude oil reserves estimate, adjusted for
the sale of BPZ Energy's 49% interest in Block Z-1 to Pacific Rubiales, is
16.4 million barrels covering the Company's Corvina and Albacora fields.The
estimates were prepared by the Company's independent reserve auditors
Netherland Sewell & Associates, Inc. A full presentation of our reserves
estimated in accordance with Securities and Exchange Commission rules will be
included in our annual report on Form 10-K.
The Company's proved (P1), probable (P2), and possible (P3) crude oil reserves
on a net basis for the Corvina and Albacora fields as of December 31, 2012
were as follows:
Total Oil Reserves (Mmbo) Total Combined Corvina Albacora
Proved (P1) 16.4 13.4 3.0
Probable (P2) 28.6 22.5 6.1
Possible (P3) 28.2 16.7 11.5
The following comparison of Block Z-1 reserves is adjusted for BPZ Energy's
51% interest on a year-to-year basis.
Total net proved reserves were lower in 2012 compared to 2011 levels by 1.3
million barrels of oil.Net oil production of 0.6 million barrels during
calendar 2012 accounted for almost half of the decrease.The remainder of the
proved reserve decrease was mainly due to workovers pending on the 14D and 15D
wells at the Corvina CX-11 platform, as well as removal of the Albacora A12F
well from the proved category given its required conversion to a gas injection
well.During 2012 no new wells were drilled in either field.
The net probable reserves category declined by 1.7 million, also mainly due to
the workovers pending at the 14D and 15D wells previously mentioned.Net
possible reserves were relatively flat year-over-year.
ABOUT BPZ ENERGY
Houston-based BPZ Energy, which trades as BPZ Resources, Inc. under ticker
symbol BPZ on the New York Stock Exchange and the Bolsa de Valores in Lima, is
an independent oil and gas exploration and production company which has
license contracts for oil and gas exploration and production covering
approximately 2.2 million gross acres in four properties in northwest
Peru.The Company holds a 51% working interest and Pacific Rubiales Energy
Corp. holds a 49% working interest in offshore Block Z-1, for which current
activity includes the development of the Corvina oil discovery, as well as the
redevelopment of the Albacora field.
In addition, the Company is pursuing the exploration of onshore Blocks XIX,
XXII and XXIII, 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 also owns a
non-operating net profits interest in a producing property in southwest
Ecuador.Please visit the Company's website at www.bpzenergy.com for more
FORWARD LOOKING STATEMENT
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 "will," "expected," "estimated," and "prospective,"
and other similar expressions.These forward-looking statements involve risks
Our actual results could differ materially from those anticipated in these
forward looking statements. Such uncertainties include successful operation of
our new platform in Corvina, the success of our project financing efforts,
accuracy of well test results, results of seismic testing, well refurbishment
efforts, successful production of indicated reserves, satisfaction of well
test period requirements, successful installation of required permanent
processing facilities, receipt of all required permits, the successful
management of our capital expenditures, 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
CAUTIONARY STATEMENT REGARDING CERTAIN INFORMATION 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 be economically producible by application of
development projects to known accumulations, and there exists or is a
reasonable expectation there will exist, the legal right to produce, or a
revenue interest in the production, installed means of delivering oil and gas
or related substances to market, and all permits and financing required to
implement the project. We are prohibited from disclosing estimates of oil and
gas resources that do not constitute "reserves" in our SEC filings, including
the estimates of contingent and prospective resources included in this press
release. With respect to "probable" and "possible" reserves, we are required
to disclose the relative uncertainty of such classifications of reserves when
they are included in our SEC filings. Further, the reserves estimates
contained in this press release are not designed to be, nor are they intended
to represent, an estimate of the fair market value of the reserves.
The Company is aware that certain information concerning its operations and
production is available from time to time from Perupetro, an instrumentality
of the Peruvian government, and the Ministry of Energy and Mines ("MEM"), a
ministry of the government of Peru.This information is available from the
websites of Perupetro and MEM and may be available from other official sources
of which the Company is unaware.This information is published by Perupetro
and MEM outside the control of the Company and may be published in a format
different from the format used by the Company to disclose such information, in
compliance with SEC and other U.S. regulatory requirements.
Additionally, the Company's joint venture partner in Block Z-1, Pacific
Rubiales Energy Corp. ("PRE"), is a Canadian public company that is not listed
on a U.S. stock exchange, but is listed on the Toronto (TSX), Bolsa de Valores
de Colombia (BVC) and BOVESPA stock exchanges.As such PRE may be subject to
different information disclosure requirements than the Company.Information
concerning the Company, such as information concerning energy reserves, may be
published by PRE outside of our control and may be published in a format
different from the format the Company uses to disclose such information,
incompliance with SEC and other U.S. regulatory requirements.
The Company provides such information in the format required, and at the times
required, by the SEC and as determined to be both material and relevant by
management of the Company.The Company urges interested investors and third
parties 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 can also be obtained from the SEC via the
internet at www.sec.gov.
CONTACT: Investor and Media Contact:
A. Pierre Dubois
Investor Relations & Corporate Communications
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