BPZ Energy provided an update on reserve estimates and operations.

The 2011 year-end total proved crude oil reserves estimate is 34.7 million barrels covering the Company's Corvina and Albacora fields located in offshore Block Z-1 in Peru. The estimates were prepared by the Company's independent reserve auditors Netherland Sewell & Associates, Inc. Commodity price of $106.56 per barrel, used in calculating the economic quantities of reserves was based on the 12-month unweighted arithmetic average of the first-day-of-the-month price for the period January 2011 through December 2011.

Total proved reserves declined in 2011 compared to 2010 levels by 4.2 million barrels of oil. Included in the decrease was production during calendar 2011, mainly from the Corvina field, which accounted for 1.4 million barrels of the proved reserve decrease during the year. At Corvina, a gas cap reinjection program was initiated in late 2011 and results since that time show marked improvement in production decline rates.

The resulting 2.8 million barrel net adjustment of proved reserves was mainly due to the results of the Albacora workover program during 2011, of which 1.7 million barrels were downgraded to the probable reserve category. During 2011 no new wells were drilled in either field.

Tags: BPZ Energy