OFFSHORE BLOCK Z-1
At Block Z-1, total net proved oil reserves at year-end 2012 were estimated at 16.4 million barrels of oil. Block Z-1 is a coastal offshore area covering 739,205 gross acres in the Tumbes Basin. Eighteen wells had previously been drilled in Albacora, Barracuda, Corvina, Delfin, and Piedra Redonda Fields during the 1970s and 1980s, with the five structures testing for oil and/or gas by other operators. Currently, oil is being produced from the Corvina and Albacora fields. BPZ holds a 51% working interest in this block and is currently developing Block Z-1 in partnership with Pacific Rubiales Energy Corp. The water depths are shallow at between 500 to 700 feet. 15 geologic structures in the block have been mapped, including the West Corvina, Albacora and Piedra Redonda Fields.
The Corvina Field is located offshore in shallow waters of the Tumbes Basin. Through the Company's drilling efforts, estimated proved SEC reserves stood at 13.4 million net barrels of oil (Mmbo) at year-end 2012.
In November 2007, BPZ began producing and selling oil from the CX-11 platform in the Corvina field of Block Z-1 under a well testing program and, in November 2010, the Corvina field was placed into commercial production. Oil is sent by barge and tanker to the Talara refinery, located approximately 70 miles to the south of the Corvina Field. The new CX-15 platform and hull have been fabricated and installed at the Corvina field with pre-drilling preparations underway.
The Albacora field is currently producing oil and is located in the northern part of offshore Block Z-1. Plans to bring this field to commercial production are progressing with all gas and water reinjection equipment now installed, and an environmental permit pending to commission the equipment. Albacora consists of approximately 7,500 gross acres and, is located in water depths of less than 200 feet. The Albacora platform was set up after the 8-X-2 discovery well was drilled from a drill ship and tested at the rates of approximately 4,600 barrels of crude oil, 20 Mmcf/d of gas, and 400 barrels of condensate. The Albacora platform is approximately 100 miles from the Talara refinery, where production from the Corvina Oil Field is currently being marketed.
The Piedra Redonda Field is the anchor of what the Company believes to be an important gas play in the Mancora Formation that may continue into Blocks XXIII and XIX. There is one shut-in gas well, the C-18X, which previously tested 8 Mmcf/d of gas from only a part of the potential pay.