BPZ Resources progresses offshore Peru operations

BPZ Resources has completed the 19D well offshore Peru with a sustained initial production rate of approximately 1,700 b/d of oil.

Offshore staff

HOUSTON -- BPZ Resources has completed the 19D well offshore Peru with a sustained initial production rate of approximately 1,700 b/d of oil. The company is currently drilling the next Corvina field well, 17D, targeting a proved undeveloped location.

The company has applied for an extended well testing (EWT) permit for the first five Corvina field wells, not including 19D and 17D. BPZ has ordered reinjection equipment for the CX11 platform and plans to transition the field out of the EWT and into commercial production by May 31.

Also offshore Peru, BPZ has completed the A-14XD well on the Albacora field with an initial production rate of 2,300 b/d of oil from an oil zone lower than any of the oil zones tested in the discovery well drilled by Tenneco in 1972. The well produced consistently with no apparent increase in its gas-oil-ratio and with no formation water reported to date, until Osinergmin required the well be temporarily shut-in. The well is pending approval of a revised environmental permit application for its processing facilities.

The company plans to operate in Albacora using an FSO -- the original application outlined operation using an FPSO, which is not currently needed as the production processing facilities will now be located on the platform rather than the vessel.

The company has begun drilling its second Albacora well, A-15D, which will be drilled to approximately 13,000 ft vertical depth and aims to test prospective sands below the lowest known oil sands tested or produced to date in the field.

BPZ is installing processing facilities at the platform, and has shut-in the A-14XD well and suspended drilling of the A-15D well until work is complete. The installation of the facilities is estimated to take approximately four weeks, at which time A-15D drilling is expected to restart. The A-15D well is scheduled to be completed late in the first quarter, depending on the time it takes to complete the installation work. The A-14XD well will be reopened once the processing facilities are in place and the corresponding permit is issued, the company says.

01/27/2010

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