BPZ Energy Announces Reaching Total Depth on CX11-20XD Well
Monday, August 25th 2008
BPZ Resources, Inc. announced the Company reached total target depth on the CX11-20XD well at the Corvina field in offshore Block Z-1 located in northwest Peru. The 20XD is the Company’s fifth well in the Corvina field and reached a total measured depth of approximately 9,800 feet (6,400 feet vertical depth). The well has been logged and testing will begin once the well has been cased. Internal estimates of the well logs indicate approximately 75 feet of potential net oil pay. With the very high well deviation, this translates into over 350 feet of prospective intervals to be perforated. The Company also observed 60 feet of potential net gas pay. The Company plans to conduct at least three drill stem tests, two of them in the prospective oil sands, before dually completing the well and starting it up as an oil producer. Testing is scheduled to take approximately three to four weeks.
Manolo Zúñiga, President and Chief Executive Officer commented, “The 20XD well has prospective oil and gas sands that show excellent potential reservoir properties on the logs; which is why we are doing at least two DSTs in the oil sands and another in the gas zone, before the well is dually completed. We will be testing the oil zones through the Company’s FPSO, thus allowing us to produce oil while we perform longer tests in the prospective oil sands. While the drilling of this highly deviated well was a true technical challenge for the Company, and we will need to be very careful during the upcoming cementing, testing and completion operations, I am proud to report that our results continue to match our geologic model.”
Houston based BPZ Energy is an oil and gas exploration and production company which has exclusive license contracts for oil and gas exploration and production covering approximately 2.4 million acres in four properties in northwest Peru. It also owns a minority working interest in a producing property in southwest Ecuador. The Company is currently executing the development of the Corvina oil discovery, the redevelopment of the Albacora oil field, and the exploration of Block XIX, in parallel with the execution of an integrated gas-to-power strategy, which includes generation and sale of electric power in Peru and the development of a regional gas marketing strategy. The Company’s website at www.bpzenergy.com provides additional information about the Company’s plans, including photographs and other information with respect to its operations.
