BPZ Resources announced that Perupetro has agreed with the Company to accept November 30, 2010 as the new First Date of Commercial Production (FDCP) for Block Z-1 and its Corvina field in northwest Peru. Consequently, the Company will apply to the agency responsible for issuing gas flaring permits (DGH) for the required flaring permits on a well by well basis, as needed, for gas flaring associated with the continued testing of the Corvina and Albacora fields. The Company believes the approval should enable it to continue testing wells, under certain gas flaring restrictions based on approved permits, up to the new FDCP. However, it is possible that the DGH could deny the Company's pending and future requests to flare gas from its wells that have not yet received the required permits.
Manolo Zuniga, President and Chief Executive Officer commented, "The approval to extend the first date of commercial production is important, as it allows us to continue with our testing of the fields as long as we do so within the gas flaring limits allowed by the permits on each well. We believe continued testing of the fields is necessary to determine the drive mechanism in place and to further enhance geologic modeling of the fields. This extension gives us time to drill one additional well and, time permitting, re-enter one of the existing wells in Corvina. In parallel we will continue preparing for the installation of the gas and water re-injection equipment to meet the FDCP in order to move from exploration and testing to commercial production."
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