Exploration & Production | Operational Updates | Bankruptcy / Restructure Update | Capital Markets
BPZ Updates Albacora A-22D Ops, Bankruptcy Proceedings
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BPZ Energy continues to operate under provisions of Chapter 11 of the United States Bankruptcy Court Code while it seeks additional financing.
At offshore Block Z-1, the Albacora A-22D well was drilled to a measured depth of 13,730 feet. The well tested water with no oil shows from the three targeted zones whichare productive in the main part of the field. These results establish the southeastern extent of the field. Our interpretation of all Albacora well and seismic data is underway to further update the field's geologic model.
A workover has begun on the Albacora A-27D wellto perforate additional untested zones. This is expected to optimize production in the well, and also provide additional data for further evaluation of the deeper Zorritos reservoirs.
Block Z-1 production from the Corvina and Albacora fields for April has averaged 4,325 barrels of oil per day(bopd) gross, or 2,206 bopd net to BPZ Energy.
Cautionary Statements Regarding Bankruptcy Proceedings
The Company's security holders are cautioned that trading in the Company's securities during the pending Bankruptcy Case will be highly speculative and will pose substantial risks. Trading prices for the Company's securities may bear little or no relationship to the actual recovery, if any, byholders thereof in the Company's Bankruptcy Case. Accordingly, the Company urges extreme caution with respectto existing and future investments in its securities.
A plan of reorganization or liquidation mayresult in holders of the Company's capital stock receiving littleor no distribution on account of their interests and cancellation of their existing stock. If certain requirements of the Bankruptcy Code are met, a Chapter 11 plan of reorganization can be confirmed notwithstanding its rejection by the Company's equity security holders and notwithstanding the fact that such equity securityholders do not receive or retain any property on account of their equity interests under the plan.