BPZ Energy Updates Corvina Gas-to-Power Project
HOUSTON, Jun 12, 2006 (BUSINESS WIRE) -- BPZ Energy, Inc. (OTC:BPZI) today confirmed plans to commence offshore drilling operations at its Corvina gas field as part of its gas-to-power project in Peru. The integrated gas-to-power project involves the initial drilling of three wells and the recompletion of the existing shut-in gas well in the Corvina gas field, located in the Company's 739,520 acre Block Z-1, offshore northwest Peru, and the subsequent construction of a 10 mile gas pipeline for transporting the natural gas production to a planned 160 megawatt gas-fired power plant.
The Company has spent the last several months modernizing the drilling rig, refurbishing the existing Corvina platform, and assembling all the supplies, equipment, and services for the drilling program. Refurbishing work on the platform and drilling rig is nearly complete. Following acceptance testing by the Company, the rig should be mobilized and installed on the Corvina platform starting in late June. The Company expects to spud the first well in late July, and drilling to total depth is estimated to take between 25 and 28 days.
Drilling Plans at Corvina Gas Field in Block Z-1
The Company has been successful in securing the high quality equipment needed to complete drilling operations in its Corvina project on cost efficient terms despite an exceedingly tight market for oil and gas equipment.
-- The refurbishment of the CX-11 production platform in the Corvina gas field is near completion. This paves the way for the mobilization and installation of a drilling rig obtained under contract from Petrex, S.A. The use of an existing platform provides significant savings in drilling costs to the Company, when compared to the escalating rates for difficult to obtain drill ships or barges.
-- The Company previously announced that it has secured a platform tender-assist drilling rig capable of drilling to 16,000 feet from Petrex, S.A. The rig is under exclusive contract at a fixed competitive day rate for up to two years, which will allow for an extended drilling program at Corvina as well as on the previously announced Albacora oil project. The Company has the option to extend the contract for an additional year at market rates. The rig has undergone an extensive modernization and refurbishment program, providing the Company with a first class asset.
