By OGJ editors
HOUSTON, Oct. 4 – BPZ Resources Inc., Houston, drilled a dry hole at its A-17D well in Albacora field on Block Z-1 off northwestern Peru and will suspend drilling until it completes a 3D seismic survey over the field, which it appears could be a series of turbidite channels or lobes.
The company had begun shooting 3D in 2009 but suspended the program at the government’s request. BPZ is completing more government-requested environmental studies to obtain the seismic permit, which should be granted in time for acquisition to begin in the first half of 2011.
During the drilling downtime, the company will fabricate and install permanent production and injection facilities on the Albacora platform. This should allow for continued production from the field once drilling resumes by avoiding gas flaring and associated permitting issues.
BPZ has placed the rig on standby until the company drills the onshore exploration well on the Pampa la Gallina prospect in Block XIX. The company will also complete ongoing seismic campaigns in Blocks XXII and XXIII.
The company expects to continue to generate cash flow from oil being tested from the CX11-17D and CX11-23D wells in Corvina and from the A-14XD well in Albacora, which has a permit valid through mid-January 2011. The company expects commercial production in Corvina beginning around Nov. 30, 2010, at which time expected production from the field could be 4,000-5,000 b/d of oil.