BZP : AMEX : US$18.45 | US$1,346.9M | Buy , Target US$33.00 • Corvina production to begin before the end of April; maintain BUY and $33 target Event BPZ Energy presented at the IPAA in New York on April 8, 2008. In addition to updating the ongoing operations at Corvina, the company began focusing on upcoming projects, which include the Albacora Field and the Pampa la Gallina prospect, which is located on Block XIX and testing the large Mancora gas trend. Impact Positive. Action We would buy BPZ shares; the company should resume production at Corvina soon, and is planning to drill a number of key wells both offshore and onshore at year-end 2008. Valuation Our price target remains unchanged at $33. This reflects Corvina 3-P oil reserves of about 60 mmboe, valued at $1.8 billion or $23.52 per share, and our $9.92 per share estimate for Albacora. Next Catalyst Before the end of April, we expect to see: test results from the DST #2 and #3 from the CX11-18XD well, resumption of production at Corvina, commencement of drilling at the CX11-20XD well and gas reserve certification from Netherland Sewell for the Corvina gas deposit.
http://www1.investorvillage.com/smbd.asp?mb=4947&mn=2241&pt=msg&mid=4517712 They have so many plays, prospects, and leads to explore and develop that I believe this is what Manolo was driving at. They are certainly not yet in a position to certify even possible reserves of this magnitude until they drill more wells on more structures. However, this is what the BPZ folks internally actually believe they really do have up there at a minimum, and it is based on a substantial database with lots of seismic and a good number of test wells drilled by others in the past. When you put all this available information together and reprocess it with modern technology, the picture that unfolds right before your very eyes begins to boggle the mind. At least it boggles mine. The crude oil and the huge gas reserves that they found just at Corvina were certainly no surprise at all to them, even though as a public company they could not have made any claims about Corvina in advance of actually drilling and testing some wells. Stay tuned, this is going to be one huge ride with world class potential.
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