BPZ Energy, Inc. announced today that the Corvina CX11-16X well was successfully completed as a natural gas producing well, following workover and testing operations.

A total of four Drill Stem Tests (DST) were conducted on various zones in the well including one in a formation previously untested in the entire basin. After completion, a final production test yielded approximately 20 million cubic feet per day (mmcf/d).

The bulk of the production came from the gas zone at the top of the Upper Zorritos formation, which tested up to 19.4 mmcf/d with 1” choke and average wellhead pressure of 665 psia. No formation water was detected during the corresponding DST #3 or the production test carried out with the final completion of the well.

These test results are consistent with the test conducted in the upper gas zone of the 21XD well that yielded 40 mmcf/d. The difference is attributable to the smaller production tubing of 2 7/8” in the 16X well, as compared to the tubing of 3 1/2” in the 21XD, as well as formation damage established from a preliminary analysis of the pressure and rate data collected in the 16X well. This formation damage prevents the 16X well to produce at its full potential and may be removed at a later date through a stimulation treatment.

The first two DST’s that were targeting possible oil sands tested formation water at rates of 440 and 516 barrels per day, respectively. However, the Company believes that the position of the 16X well, which was drilled in 1982, was not optimized for the appraisal of the oil sands extending down dip from the 21XD.

As such, the Company will position its next well (CX11-14D) between the 21XD and the 16X to further delineate the discovered Zorritos oil pool in the Corvina field, as well as continue developing the gas zone found at the top of the Zorritos formation.