The long production string looking for the deeper oil zones has been producing oil over the past three days and BPZ Resources anticipates adding the short production string later this week.
BPZ Resources also said that it will instantly continue with the intended work-over on the CX11-20XD well, which is likely to take about one month to complete. The work-over program comprises one or two tests to evaluate the efficiency of the remedial cement squeeze to be carried out. This work-over is centering on removing the gas channeling which is now interfering with the output of the oil well.
Also, the work on flow lines from the platform to the floating production, storage and offloading barge (FPSO) is nearing conclusion. One flow line has been concluded and work on the second line should be concluded before the end of April 2009.
Manolo Zuniga, president and chief executive officer commented, The results in the 15D sidetrack are once again confirming our geologic model for Corvina although we encountered the top of the target Zorritos formation higher than anticipated, indicating that Corvina may have additional volumes of oil and gas in place. The long production string targeting the deeper oil zones has been producing oil over the past three days and the Company expects to add the short production string later this week, giving us the ability to provide the market more accurate data on the well.
We dually completed this well with two sets of production tubing in the oil sands to maximize its production capacity and to provide more flexibility in our reservoir management program. With the 15D on production, the work on the flow lines almost complete, and expecting the work-over on the 20XD to bring it back to its original production performance, we will be in a position to take full advantage of Corvina’s productive capacity and intend to complete the remainder of the Corvina drilling program. The next few wells drilled in Corvina from the CX-11 platform are going to target Proved Undeveloped locations with the goal of moving reserves to the Proved Developed Producing category.
Zuniga added, With each well drilled we gather important data, and with the ongoing testing program we gather valuable information that is helping us to continue appraising the size of the field as well as generate important cash flow for the Company.
