BPZ Energy Updates on Peru Drilling and Workovers

BPZ Energy, an independent oil and gas exploration and production company, today announced an update to Block Z-1 operations in Peru.

Corvina CX-15 Drilling

Preparations for the new CX-15 development drilling campaign continue with some delays deemed necessary to make adjustments to the platform’s draft (submerged depth). As a result, the first well spud is expected to occur within three to six weeks, depending on progress, as well as weather and sea conditions. Targeted depth of the first CX-15 well, named 4D, will be approximately 6,700 feet subsea. Conventional cores of the reservoir rocks will also be cut during drilling operations.

Corvina CX-11 Workovers

The workover campaign at the CX-11 platform has resumed with work currently underway at the 14D well, which will be followed by a workover on the 15D well. Other CX-11 wells are under review for potential workovers during 2013.

Manolo Zúñiga, President and CEO of BPZ Energy, commented, “First drilling at the CX-15 is taking longer than anticipated due to the usual learning curve on starting up a new platform, which in our case has required us to make certain adjustments to the platform’s draft. It is important that our team follow all the recommended engineering and safety measures during the startup phase of this multi-well drilling campaign, which includes commissioning all the production equipment and interconnecting the CX-11 and CX-15 platforms with four production lines.”

“Aiming at increasing and optimizing production at Corvina, we are excited that we will soon begin drilling from the CX-15 buoyant tower as well as having reinitiated the CX-11 workover campaign, and with both Corvina platforms interconnected our reservoir management capability is also expected to improve. Meanwhile, interpretation of the new 3D seismic data at Corvina is ongoing, allowing us to continue refining the future CX-15 development drilling locations. Furthermore, the 3D seismic data acquired in the rest of Block Z-1 is allowing us to define our future offshore exploration program, and our return to drilling at Albacora.”

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March 1, 2013