Peru

By OGJ editors
HOUSTON, July 26 – BPZ Resources Inc. has reopened the A-14XD well in Albacora field off Peru after receiving the needed extended well testing (EWT) and gas flaring permits.

The well, which averaged 1,510 b/d of oil in the quarter ended June 30 and averaged 1,400 b/d in June, was shut-in July 12. The permits are valid for 6 months and include limits on the amount of gas that can be flared in that period.

BPZ believes that the allocated amount of gas to be flared under the permit should allow the well to be produced under the same conditions as before for most if not all of the permitted period. The company will request another EWT period in due time to allow for the well to stay open until the appropriate gas reinjection equipment is commissioned.

BPZ is conducting the initial engineering study on Albacora field to assess the equipment needs to inject the associated gas and efficiently transition the field into commercial production in order to minimize potential future production interruptions due to EWT regulations.

The company also awaits a ministry decision on its previously submitted application for EWT permits for the six wells in Corvina field.