BPZ Energy Provides Block Z-1 Oil Production Volumes and Corvina Field Update

BPZ Energy BPZ today provided an update on Block Z-1 production volumes, as well as the Corvina workover program and the new CX-15 platform. Block Z-1 First Half and Second Quarter 2012 Production For the first half of 2012, average total production from the Corvina and Albacora fields at offshore Block Z-1 was 3,715 barrels of oil per day (bopd), compared to 4,100 bopd for the same period last year. All production numbers noted in the release are on a 100% gross basis. For the second quarter ended June 30, 2012, total oil production from the offshore Corvina and Albacora fields in Block Z-1 was 323 thousand barrels (MBbls), or 3,550 bopd, compared to 353 thousand barrels, or 3,880 bopd in the first quarter of 2012. Corvina Workover Program Reduced Block Z-1 production in the second quarter compared to the first quarter of 2012 was mostly due to lower production at Corvina, as Albacora production was relatively stable. Corvina's CX-11 platform will undergo a new six-well workover program at an estimated cost of $12 million to optimize production. The workover program, among other objectives, is intended to correct a mechanical problem in one of the two active CX-11 gas reinjection wells that is affecting the performance of two oil producing wells. This mechanical problem started in early July, and has reduced the field's production to approximately 2,000 bopd. This workover program will begin in early August as the contracted workover rig is currently being mobilized to the CX-11 platform. Block Z-1 is currently producing a total of approximately 3,000 bopd, including the Albacora field. CX-15 Platform Fabrication of the new CX-15 platform has been completed in the Wison Nantong yard in China. As previously announced, the CX-15 platform has 24 drilling slots and comes with all of the required production and reinjection equipment. Additional ancillary equipment is being shipped to Peru for installation at Corvina, as planned.