BPZ Energy (BPZ) Sees FY12 CapEx of $105M; Updates on Corvina, Albacora Fields
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BPZ Energy (NYSE: BPZ) has provided an operational update and announced the 2012 capital investment program.
For the fourth quarter and year ended December 31, 2011, estimated total average production from Block Z-1 (Corvina and Albacora fields combined) was 3,300 and 3,775 barrels of oil per day (bopd), respectively. January production from these two fields in offshore Block Z-1 is averaging approximately 4,000 bopd.
Corvina Field
Since the beginning of the New Year, the Corvina oil field has been producing approximately 3,250 bopd. With the workover program at Corvina now completed, gas reinjection into the gas cap has begun at the field and the snubbing unit has been demobilized. In the coming months, additional data will be available to allow the Company to better assess the overall impact to production from gas cap reinjection, and evaluate other opportunities for artificial lift to optimize production.
Albacora Field
Daily volumes from production testing in the field during January are approximately 750 bopd, including restored oil production from the A-14XD well. The gas compressor and the produced water injection equipment which will bring the Albacora field to commercial production are on the platform and are being connected. Commissioning should be complete before the previously received approved permit for gas flaring expires at the end of February 2012.
In the interim, the Company has received a new gas flaring permit to open the pre-existing A-12F well to test targeted oil and gas zones until the end of January 2012. Testing of this well is currently underway to further evaluate the field.
2012 Business Plan
The Company plans to spend approximately $105 million in 2012 on capital and exploratory expenditures, excluding capitalized interest. Planned capital expenditures of approximately $80 million include project and engineering expenditures of $42 million (including $27 million for the new Corvina CX-15 platform with facilities and $15 million for other facilities for both fields), CX-15 developmental drilling expenditures of $32 million, and other expenditures of $6 million.
The Company expects to install the new CX-15 platform and begin a developmental drilling campaign in the second half of 2012. Two wells are scheduled to be completed during 2012 with first oil production expected in the fourth quarter.
In addition to the capital expenditures, geological, geophysical and engineering expenses (or exploratory expenses) are expected to be $25 million, including $22 million for the Block Z-1 seismic survey, expected to begin in the first quarter of 2012.
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For the fourth quarter and year ended December 31, 2011, estimated total average production from Block Z-1 (Corvina and Albacora fields combined) was 3,300 and 3,775 barrels of oil per day (bopd), respectively. January production from these two fields in offshore Block Z-1 is averaging approximately 4,000 bopd.
Corvina Field
Since the beginning of the New Year, the Corvina oil field has been producing approximately 3,250 bopd. With the workover program at Corvina now completed, gas reinjection into the gas cap has begun at the field and the snubbing unit has been demobilized. In the coming months, additional data will be available to allow the Company to better assess the overall impact to production from gas cap reinjection, and evaluate other opportunities for artificial lift to optimize production.
Albacora Field
Daily volumes from production testing in the field during January are approximately 750 bopd, including restored oil production from the A-14XD well. The gas compressor and the produced water injection equipment which will bring the Albacora field to commercial production are on the platform and are being connected. Commissioning should be complete before the previously received approved permit for gas flaring expires at the end of February 2012.
In the interim, the Company has received a new gas flaring permit to open the pre-existing A-12F well to test targeted oil and gas zones until the end of January 2012. Testing of this well is currently underway to further evaluate the field.
2012 Business Plan
The Company plans to spend approximately $105 million in 2012 on capital and exploratory expenditures, excluding capitalized interest. Planned capital expenditures of approximately $80 million include project and engineering expenditures of $42 million (including $27 million for the new Corvina CX-15 platform with facilities and $15 million for other facilities for both fields), CX-15 developmental drilling expenditures of $32 million, and other expenditures of $6 million.
The Company expects to install the new CX-15 platform and begin a developmental drilling campaign in the second half of 2012. Two wells are scheduled to be completed during 2012 with first oil production expected in the fourth quarter.
In addition to the capital expenditures, geological, geophysical and engineering expenses (or exploratory expenses) are expected to be $25 million, including $22 million for the Block Z-1 seismic survey, expected to begin in the first quarter of 2012.
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