Macro Tsimmis

intelligently hedged investment

BPZ Energy (BZP) update #5

Posted by intelledgement on Mon, 03 Mar 08

BPZ Energy (BZP) announced the results of an independent audit of the company’s oil reserves today, and the result is a 50% increase over last year’s estimate: 17.8 MMBBLS up from 11.9 MMBBLS.

This estimate covers just the Block Z-1 Corvina offshore field, which is up to now the only place the company has drilled (four wells so far). Manolo Zúñiga, President and Chief Executive Officer, commented, “We are pleased with the initial independent reserves report…. Our next well, the 20XD, will finish delineating the oil-in-place volumes, while the following well, the 15D, will try to target the Probable oil-in-place area. This will complete our initial Corvina drilling campaign prior to moving on to the Albacora oilfield. In the near future we plan to install an additional platform in Corvina which will help us fully develop the oil reserves…. [T]he Company is on the right path to potentially exceed our initial goal of achieving 50 Mmbo of proved reserves.”

The estimate is as of 29 Feb 08. The auditors—Netherland Sewell and Associates, Inc.—also prepared an SEC-compliant estimate for the company’s 2007 10-K; that estimate is smaller because it is as of 31 Dec 07 and thus cannot take into account the 18-XD well data, given that that well was still being drilled at that point.

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