BPZ gives update on production, testing, shares fall to year-low

BPZ gives update on production

HOUSTON — Shares of BPZ Resources Inc. fell Tuesday after the oil and gas exploration and production company gave an update about its production and testing process.

The company said a well it is testing in Peru’s Corvina field “failed to achieve a consistent initial production rate because of the resulting high gas oil ratios.”

To avoid delays in transitioning its Corvina drilling to commercial production, the company said it plans to work over this well to isolate the gas sand.

In addition, BPZ said it has a contact for 400,000 barrels of its Albacora oil with a local refinery that has salt content limits, which require the oil to be treated to reduce the total salt content.

BPZ said it has been reducing the salt content of the Albacora oil but since an initial shipment has accumulated about 200,000 barrels of the oil. Of this, about 110,000 barrels were sold under a separate contract. The company said its oil treatment system “should allow it to sell the Albacora oil under the initial 400,000 barrel oil sales contract.”

Shares of BPZ fell 41 cents, or 11 percent, to $3.41 in afternoon trading. Earlier, the stock hit a 52-week low of $3.03.