BPZ Energy starts oil production in Corvina

BPZ Resources, Inc. has begun oil production at the CX11 platform in the Corvina field of its offshore Block Z-1 in northwest Peru. This early production was initiated pursuant to the Company’s Initial Development Plan that requires the new wells to be put on extended production tests. This will allow the Company to start gathering crucial reservoir data that will be used to optimize the field’s performance.

The Company began producing from the CX11 platform on November 1, 2007 using two 6,000 barrel capacity tankers leased from the Peruvian navy. First production came from the CX11-21XD well, which reached a stabilized rate of 2,500 barrels of oil per day (bopd). The 21XD well was shut after the first tanker was filled with 5,000 barrels of oil and to allow the Company to finish the dual-completion of the recently drilled CX11-14D well. The Company then proceeded to conduct a new gas test by opening the 2 7/8” tubing string used in the dual-completion, allowing the 14D well to reach the maximum design throughput of 28 million cubic feet per day, as expected. Subsequently, the 14D oil tubing string was opened and the 14D flowed at a stabilized rate of 1,900 bopd, producing 5,000 barrels of oil into the second tanker. No formation water was detected in either well.

The two Navy tankers will deliver this first 10,000 barrels of Corvina oil to the Company’s recently refurbished 40,000 barrel transport barge, which will be moored adjacent to Petroperu’s Talara refinery located approximately 70 miles south of the Corvina field. Once the transport barge is filled to near capacity, the oil will be off-loaded into the refinery. The Company expects to receive internationally based spot prices in accordance to the quality of the Corvina oil.