CX11-20XD
News Release
Contact: Greg Smith
Director of Investor Relations and
Corporate Communications
281-556-6200
BPZ Energy Announces Reaching Total Depth on CX11-20XD Well
Houston, Texas---August 25, 2008---BPZ Resources, Inc. (AMEX:BZP) announced the Company reached total target depth on the CX11-20XD well at the Corvina field in offshore Block Z-1 located in northwest Peru. The 20XD is the Company’s fifth well in the Corvina field and reached a total measured depth of approximately 9,800 feet (6,400 feet vertical depth). The well has been logged and testing will begin once the well has been cased. Internal estimates of the well logs indicate approximately 75 feet of potential net oil pay. With the very high well deviation, this translates into over 350 feet of prospective intervals to be perforated. The Company also observed 60 feet of potential net gas pay. The Company plans to conduct at least three drill stem tests, two of them in the prospective oil sands, before dually completing the well and starting it up as an oil producer. Testing is scheduled to take approximately three to four weeks.
Manolo Zúñiga, President and Chief Executive Officer commented “The 20XD well has prospective oil and gas sands that show excellent potential reservoir properties on the logs; which is why we are doing at least two DSTs in the oil sands and another in the gas zone, before the well is dually completed. We will be testing the oil zones through the Company’s FPSO, thus allowing us to produce oil while we perform longer tests in the prospective oil sands. While the drilling of this highly deviated well was a true technical challenge for the Company, and we will need to be very careful during the upcoming cementing, testing and completion operations, I am proud to report that our results continue to match our geologic model.”
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 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. |
