HOUSTON -- BPZ Resources is focusing on an oil development in the offshore block Z-1 in northwest Peru with a goal of doubling production and reserves during 2009.
With commodity prices at five-year lows, the company has made changes to its drilling plans for 2009 and has reduced operating as well as general and administrative expenses in Peru and Houston, in an effort to optimize profits.
The company plans to commit a majority of its capital expenditures budget to appraise and develop the oil in the Corvina and Albacora fields. BPZ has decided to keep the rig currently drilling at the CX-11 platform in place to drill three additional oil development wells this year.
Additionally, the recently contracted rig scheduled for onshore block XIX, will instead be mobilized to the Albacora platform to drill two new wells beginning in 2Q 2009. Under this development plan, the company hopes to double production exiting 2009, at 12,000 b/d of oil.