BPZ Energy Announces New Production From Albacora 18D-ST Well And Block Z-1 Update

BPZ Energy

, an independent oil and gas exploration and production company, today provided an operations update for Block Z-1. Albacora A18D-ST Well Online At the Albacora field, the A-18D side track well was completed in late September. The well was drilled to a total measured depth of approximately 12,740 feet and has been under production testing to evaluate new deeper oil zones. The known upper oil sands were placed on production together with the new deeper oil sands. The 24-hour peak production rate during these initial tests was 820 bopd gross, or 418 net to BPZ. During the different sequence of tests, average well production has been approximately 721 barrels of oil per day (bopd) gross, or 368 bopd net to BPZ, over the past 14 days. On a preliminary basis, PLT (Production Logging Tool) tests have indicated that due to the higher reservoir pressures, the deeper oil sands are currently the dominant producers. Further analysis is underway to optimize the well productivity. Block Z-1 Production Production from the Albacora and Corvina fields at Block Z-1 for third quarter 2014 averaged approximately 4,777 bopd gross, or 2,436 bopd net to BPZ, which is an 83% increase compared to the same period last year. Over the past 14 days, gross production at Block Z-1 averaged approximately 5,400 bopd, or 2,754 bopd net to BPZ. Development Drilling Schedule At the Corvina field, the CX15-10D well is completed with results expected in November. The well was spud on September 14, 2014 and reached targeted measured depth of approximately 8,000 feet. The well was cased, cemented, and completed in less than six weeks. The Corvina CX15-14D was spud on October 25, 2014. Estimated total measured depth of the well is 7,725 feet, with results expected in December. At the Albacora field, the A-27D development well was spud on October 6, 2014. Estimated total measured depth of the well is 14,500 feet, the deepest well of the ongoing Albacora drilling campaign, also targeting deeper potential oil zones seen in other Albacora wells. Results are expected by year-end 2014. Given the discovery of the deeper oil in Albacora, the next few wells in 2015 are also expected to be drilled in the same area of the field to continue its development appraisal. Albacora Production Optimization As part of the Albacora field evaluation and reservoir management, PLT tests have also been run on the A-26D, A-21D, and A-19D oil wells with the goal to increase production on all three wells. PLT tests provide data on the type of fluids and rates being produced from different open zones, including the new deeper oil zones to support the year-end 2014 potential certification of new oil reserves at Albacora. The PLT tests on the A-26D and A-19D confirmed the deeper oil sands continue to contribute most of the production from these two wells and further analysis is underway to optimize well productivity. The PLT test on the A-21D confirmed that formation water is coming from the bottom sand, and an intervention plan to isolate that water producing sand is now being prepared. Manolo Zuniga, President and CEO commented, "Recent improvements in the Block Z-1 development drilling program have enabled new Corvina and Albacora oil wells to be drilled and completed in a month and a half and two months, respectively, which was our original targeted timeline for drilling and completion. Fourth quarter activity at Block Z-1 continues to increase with the drilling of three more oil wells, installation of gas lift on several oil wells, and well interventions based on the PLT findings. This activity includes the ongoing testing of the new deeper oil sands at Albacora and their potential contribution to year-end 2014 production and reserves. As envisioned, the development drilling results this year at both the Albacora and Corvina fields have set the stage for continued production and cash flow growth in 2015."