BPZ Spuds Albacora Well Offshore Peru

BPZ Resources, Inc. on Wednesday the commencement of drilling in the Albacora Field in offshore Block Z-1 in northwest Peru.

The A-14XD will be drilled from the Company's recently refurbished "A" platform to a depth of approximately 15,000 feet. This well is designed as a twin to the 8X-2 discovery well drilled in 1972 by Tenneco, which tested oil, gas and condensate. The refurbished platform also has three shut in oil wells that were drilled by Belco Oil & Gas in 1977 and produced for a short period of time.

The A-14XD well will fulfill the Company's current license contract exploration commitment in Block Z-1, as the Company intends to test the Lower Zorritos formation in the Albacora Field for the first time. Although Tenneco's 8X-2 discovery well penetrated the Lower Zorritos, testing was only done in the Upper Zorritos formation and the subsequent six wells drilled by Tenneco and Belco did not penetrate the Lower Zorritos.

The Company expects to have the new A-14XD well to total depth around year end and will conduct as many drill stem tests as necessary to fully evaluate the well. The duration of testing will depend on the number of prospective sands identified by a comprehensive logging program. The Company is also putting in place production facilities to carry out an extended well testing program. With the ongoing operations in Corvina and operations commencing in Albacora, the Company now has two rigs working in its offshore Block Z-1.

Houston based BPZ Energy is an oil and gas exploration and production company which has exclusive license contracts for oil and gas exploration and production covering approximately 2.4 million acres in four properties in northwest Peru. It also owns a minority working interest in a producing property in southwest Ecuador. The Company is currently executing the development of the Corvina oil discovery, the redevelopment of the Albacora oil field, and the exploration of Block XIX, in parallel with the execution of an integrated gas-to-power strategy, which includes generation and sale of electric power in Peru and the development of a regional gas marketing strategy.