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BPZ cleared for Albacora tests

Offshore staff

HOUSTON – BPZ Resources has received clearance from Peru’s Ministry of Energy and Mining for interference testing and associated gas flaring on the offshore Albacora field.

The permits are for the A-14XD, A-9G, and A-13E oil wells, - the latter two drilled by a previous operator - all currently shut-in at the Albacora platform. Workovers will first be conducted on the A-9G and A-13E wells, with the program due to start next month.

During the four-month period, each well should be opened at various intervals, individually and simultaneously, to test reservoir connectivity of the sands that were producing at the A-14XD well.

Once interference testing has been completed, BPZ plans to open previously untested zones in each of the three wells. To produce from those new zones, it also needs authorization to flare associated gas until injection equipment is installed at the Albacora platform, currently scheduled for year-end.

At BPZ’s Corvina offshore field, the permanent production facilities, including the compressor, are operating at predicted efficiency levels. The company has approval to keep the wells open while the compressor undergoes scheduled maintenance.

Additional production arising from interference testing at Albacora should offset the anticipated drop from Corvina caused by delay to well workovers. BPZ expects total production this year to average around 4,000 b/d.

The company is applying for a permit to acquire an offshore 3-D seismic survey in Peru’s block Z-1. Governmental agencies are finalizing their review, and BPZ is hopeful of gaining approval by mid-year.

After that survey has been completed and the data processed and interpreted, BPZ aims to resume drilling at Albacora.

04/13/2011

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