BPZ Resources declared the completion of well CX11-23D with a sustained initial production rate (IPR) of approximately 1,500 barrels of oil per day (Bopd). The Company has also received a denial of its request for reconsideration of the Extended Well Testing (EWT) permit for the Corvina 19D well. Additionally, the Company continues testing the A-17D well in Albacora and an update is provided below.

The CX11-23D well in Corvina began the testing phase in mid-September with a sustained IPR of approximately 1,500 Bopd. This is the final well to be drilled from the existing CX-11 platform and the rig has been removed from the platform in order to complete the installation of facilities for production, as well as gas and water re-injection. This equipment will be necessary to transition the field from exploration to commercial production, currently scheduled for November 30, 2010.

The CX11-19D well, which has been shut in since mid-June, the end of its initial six month testing period, has again been denied the needed EWT permit to continue testing until November 30, 2010, the date of first commercial production in Corvina. This well will remain closed until the gas and water re-injection facilities are installed and commissioned at the CX-11 platform.

In Albacora, the A-17D well remains in the testing phase. The Company has yet to bring crude oil to surface from the zones tested to date. The Company is testing additional zones to determine whether or not the well can be produced.

Manolo Zuniga, President and Chief Executive Officer commented, "The sustained initial production from the new Corvina well comes at an important time for the Company. Currently we are testing oil at approximately 4,500 Bopd from Corvina and Albacora. We have completed moving the rig off the Corvina platform and have already installed some of the necessary equipment needed to meet the November 30, 2010 date of first commercial production in Corvina. We are disappointed that we did not receive a positive response to our request to re-establish testing from the 19D in Corvina, highlighting the importance of the results from the 23D well. The denial for EWT on the 19D should only impact the Company for approximately 60 more days as we anticipate meeting the November 30th date where we can initiate commercial production at the CX-11 platform." Mr. Zuniga continued, "In Albacora we continue testing operations on the A-17D and should be able to provide an update on this well within the next few weeks."

Tags: BPZ Resources