January 5, 2010 (FinancialWire) — BPZ Resources, Inc. (NYSE: BPZ) announces the completion of the CX11-19D well in the Corvina field and the A-14XD well in the Albacora field, both located in offshore Block Z-1 in northwest Peru.

The 19D was put on production at an initial rate of approximately 1,700 barrels of oil per day  and the A-14XD at approximately 2,300 bopd.

The CX11-19D well was drilled and successfully completed into a Proved Undeveloped area of the Corvina field, targeting not only sands currently produced in other wells but also lower yet untested oil sands that turned out to be productive. The 19D well is at the present time producing from these sands. During the drilling of this well, the Zorritos formation was again encountered higher than previously mapped. The electric logs show approximately 148 feet of net oil pay plus an additional 34 feet of net gas pay. The company selectively perforated approximately 100 feet of the total 148 feet of estimated net oil pay to test the lower sands that had not previously been included in the Corvina testing program. The initial performance of the well will be evaluated over a period of time before a decision is made whether to perforate any of the remaining net pay found in the upper oil zones.

The 19D well is the company’s sixth oil well from the CX11 platform and was carefully evaluated prior to placing it into the ongoing production testing phase at an initial rate of approximately 1,700 bopd. Although each of the previous Corvina wells has declined differently, partly due to the fact that these wells were completed in different zones and some of the wells had mechanical problems, they all have initially shown typical solution gas drive behavior which can lead to significant declines during the first year of production before leveling off to sustainable rates. However, the representative rates of decline remain to be determined as the effective production mechanism in the Corvina field has yet to be fully understood, hence the need to continue testing these initial wells.

The A-14XD well, the company’s first well in the Albacora field, was drilled, cased, tested, completed, and put on production testing before year end. The top of the Upper Zorritos formation was found at approximately 9,300 feet MD, while the bottom of the Lower Zorritos formation was found at approximately 14,450 feet MD, resulting in approximately a 5,150 foot section of Upper and Lower Zorritos formation. The logs indicate the presence of multiple prospective sands throughout the entire section.

The company estimates this well has approximately 100 feet of net gas pay and approximately 150 feet of net oil pay, plus similar amounts of prospective pay that still require further evaluation. The company selectively perforated one interval which accounts for approximately 80 feet of the total 150 feet of estimated net oil pay. The well was then completed and its initial performance will be evaluated over a period of time before a decision is made whether to perforate any of the additional net pay found in the upper oil zones. The A-14XD has now been put on an initial six-month testing program at an initial rate of approximately 2,300 bopd. The only previous production history in Albacora is from the shut-in Belco wells drilled in the 1970s that were produced for a very limited time, with each showing different productive capacity and decline rates. The ongoing testing program aims at determining the field’s drive mechanism, as well as a representative decline rate for this and future wells. With the drilling of the A-14XD well the company complied with its previous exploration commitment under the Block Z-1 license contract, and has now entered into a new exploration period with an exploration well as commitment during this new period.

Although both fields have light sweet crude oil, Corvina’s is 23 degree API while Albacora’s was found to be 37.5 degree API. Similarly, Corvina’s natural gas is basically dry, while the original drilling campaign in Albacora showed that the tested gas sands were rich in condensates.

The company cautioned that both the 19D well in Corvina and the A-14XD well in Albacora will be tested and produced under the new well-testing regulation, giving companies six months to evaluate a new well before applying for the Extended Well Testing (EWT) program.

Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). Recently issued reports and filings include Weatherford International Ltd. (NYSE: WFT), UQM Technologies, Inc. (AMEX: UQM), Panhandle Oil and Gas, Inc. (NYSE: PHX), Encore acquisition Company (NYSE: EAC), Altius Minerals Corp. (TSX: ALS), PKC Group Oyj (PLUS: PKC1V) and Standard Life Investments European Private Equity Trust PLC (LSE: SEP) (PLUS: SEP).

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