BPZ Energy Initiates Testing Operations

BPZ Energy Initiates Testing Operations

BPZ Energy, Inc. announced that testing has begun on the recently drilled CX11-21XD well in the Company’s Corvina gas field off the coast of Peru.

The Company successfully completed all pressure integrity tests of the well, replaced mud by completion brine in the wellbore, and connected the gas flare and surface equipment to the well. Consequently, the testing phase was initiated with a series of activities including the insertion of explosive charges in the tubing-conveyed perforating (TCP) guns, checking and assembling of the 3 1/2″ pipes to be used as production string during the tests, and installation of the corresponding blow-out preventers.

As previously announced, the Company will conduct several drill stem tests (DST) in the prospective Upper and Lower Zorritos formations. The first DST will be conducted on the Lower Zorritos formation consisting of high permeability gas sands with limited quantities of mobile water. The second DST will be conducted in the bottom section of the Upper Zorritos formation. This second DST is targeting lesser quality sands with larger quantities of mobile water. A successful test could then help validate the vast majority of the prospective pay identified through petrophysical analyses. The third and final DST will be conducted in the top section of the Upper Zorritos. This section has highly permeable sands with no mobile water, thus representing potentially the best quality gas sands.

The Company expects testing to take approximately two to four weeks. The tests are designed to provide the Company and its independent reserve engineers with data on actual gas pay and well deliverability, leading to the quantification of reserves in the Corvina gas field.

About BPZ Energy

Houston-based BPZ Energy, Inc. is an oil and gas exploration and production company with properties in northwest Peru and southwest Ecuador. It is executing its first project, an integrated gas-to-power strategy which includes generation and sale of electric power in Peru and sales of gas into Ecuador for third-party power generation. BPZ has exclusive rights and license agreements for oil and gas exploration and production covering approximately 2.4 million acres in four properties in northwest Peru. It also owns a working interest in a producing property in southwest Ecuador. 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.

Forward-Looking Statements

This Press Release contains forward-looking statements based on our current expectations about our company, our properties, our estimates of required capital expenditures and our industry. You can identify these forward-looking statements when you see us using words such as “expect,” “anticipate,” “estimate,” “believes,” “plans” and other similar expressions. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements. Such uncertainties include the success of our project financing effort, including final documentation and execution of financing documents with IFC, well refurbishment efforts and the successful management of our capital development project and other normal business risks. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements.

The U.S. Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only “Proved” reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The Company is prohibited from disclosing other categories of reserves in its SEC filings. We use certain terms in this press release such as “Indicated” “Probable” or “Possible” oil and gas reserves or “Pay” or “Potential Pay” that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our SEC filings, available from us at 580 Westlake Park Blvd., Suite 525 Houston, Texas 77079; Telephone: 281-556-6200. You can also obtain these filings from the SEC by calling 1-800-SEC-0330. The reserve quantities reflected above were certified by Gaffney, Cline & Associates using the 1997 definitions and standards of the Society of Petroleum Engineers and World Petroleum Congresses. These definitions and standards may result in estimates of proved reserves which are materially different from those disclosed in the Company’s filings with the SEC.


BPZ Energy, Inc., Houston Manolo Zuniga, 281-556-6200 CEO or Brad Holmes, 713-591-3138

Investor Relations Advisor

Source: BPZ Energy, Inc.

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