Macro Tsimmis

intelligently hedged investment

BPZ Energy (BZP) update #2

Posted by intelledgement on Tue, 08 Jan 08

Our Peru-centric E&P play, BPZ Energy (BZP) announced good news today: drilling of their fourth well, CX11-18XD, reached total depth on 1 January, 30 days ahead of schedule. “The sands we encountered had excellent oil shows and further testing will define the potential of this section of the Corvina field,” stated Manolo Zúñiga, President and Chief Executive Officer. “In particular, we will test the well to prove up new oil zones in sands deeper in the Upper Zorritos formation. The mud log shows that the oil sands we encountered may be thicker than those found in the 21XD and 14D wells, which is in line with our geologic models,” he added.

The CX11-21XD well tested 60 million cubic feet of gas per day and 5,900 barrels of oil per day. If this well comes anywhere near those levels, it will probably enable BZP to augment their proved reserves. Testing will take up to a month.

BZP stock closed up 11% today on three times normal volume on the news.

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