BPZ Resources, Inc. - Shareholder.com

acora
4
2008 2009 2010
BPZ Energy has exclusive licenses for oil and gas exploration in four blocks in northwest Peru, covering
approximately 2.2 million acres in three primary basins. Our operations are focused on the proven
petroleum systems in the Tumbes and Talara Basins, as well as in the Lancones Basin exploration play.
These licenses give us the ability to explore, assess, develop and produce oil and natural gas in offshore
and onshore areas where we believe petroleum systems exist that may hold significant quantities of
crude oil and natural gas. Our operations in these four blocks range from exploration to production and
provide a balance of near-term cash flow and longer-term visible growth potential. It is our objective to
develop these resources in a safe, responsible and profitable manner.
Offshore - Block Z-1
Block Z-1 is our core strategic asset and the focus of our current development and production
operations. We hold a 100 percent working interest in Block Z-1, which is a coastal offshore
area in the Tumbes Basin. During the 1970s and 1980s, eighteen wells were drilled in the geological
structures named Albacora, Barracuda, Corvina, Delfin, and Piedra Redonda, with all five prospects
testing positively for oil and/or gas.
Corvina Oil Field
On November 30, 2010, we officially transitioned our Corvina oil field from production testing to
commercial production. Since 2007, we have drilled nine successful wells at Corvina, and our drilling
success has generated increases in proved reserves. At year-end 2010, Corvina field proved reserves
were approximately 29 MMBO.
Approximately 22 MMBO of proved undeveloped oil reserves (PUDs), consisting of 17 future wells,
are located in the Corvina field which represent the next step to our change in production. To access
those reserves, we are building a second platform with 24 drill slots, which will be positioned over the
identified oil pool in the field. After allowing for the required reinjection wells, up to 22 new oil wells
may be drilled. In addition, probable reserves of 25 MMBO may also be accessible from the new
platform. We anticipate commencing drilling operations on our first well from the new platform in
the second half of 2012.
Albacora Oil Field
At year-end 2010, our Albacora field maintained 9.7 MMBO of proved reserves. Four oil wells
are currently shut-in, including the three pre-existing shut-in wells and the A-14XD well that the
Barrels of Crude Oil
1,800,000
1,400,000
1,000,000
BPZ Energy | 2010 Annual Report
Operations Review
600,000
200,000
Production Summary
0
Corvina Albacora
2007 2008 2009 2010
Production and Reserves Growth
MMBO
40
30
20
10
0
SEC Proved Oil Reserves –
Corvina & Albacora
Corvina Albacora
11.9
17.2
37.5
10.0
27.5
38.9
9.7
29.2
YE 2007 YE 2008 YE 2009 YE 2010
MMBO
40
30
20
10
0
Corvina Albacora
11.9
17.2
37.5
10.0
27.5
YE 2007 YE 2008 YE 20