BPZ announced 2010 year-end total proved crude oil reserves of 38.9 million barrels covering the Company's Corvina and Albacora fields located in Block Z-1 in offshore northwest Peru.
The reserves estimates were prepared by its independent reserve auditors Netherland Sewell & Associates, Inc. (NSAI) in accordance with the disclosure rules of the Securities and Exchange Commission (SEC). Commodity price of $76.92 per barrel, used in calculating the economic quantities of reserves was based on the 12-month unweighted arithmetic average of the first-day-of-the-month price for the period January 2010 through December 2010.
The Company's proved (P1), probable (P2), and possible (P3) crude oil reserves as of December 31, 2010 were as follows:
The Company's reserve replacement for 2010 was approximately 195%. Reserves in all categories in the Corvina field increased due to drilling additional wells that resulted in the definition of a larger oil pool which in turn supported an increase in the number of estimated development wells. Probable and Possible Reserves in Albacora have increased due to the better than expected production performance of the A-14XD as well as an increase in the number of estimated development wells.
Manolo Zuniga, President and Chief Executive Officer commented, "We are pleased with the increase in all reserve categories as we believe it once again validates the potential of our first two oil fields. The estimated ultimate recovery of our proved undeveloped locations remains at approximately 1.2 million barrels per well. The year-on-year growth of four percent, 13 percent, and 47 percent of our proved, probable and possible reserves, respectively, demonstrates our ability to continue delivering value to stakeholders." Mr. Zuniga continued, "Since placing the Corvina field on commercial production on November 30, 2010, we have been able to achieve a more stabilized oil production profile, which provides us with the opportunity to pursue a credit facility using these reserves. Going forward, the Company is committed to matching future production with the reserves."
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