BPZ Energy outlines $50MM capital expenditures plan

Source: BPZ Energy

PZ Resources, Inc. (NYSE:BPZ) announces the 2011 capital expenditures plan, approximating $50 million, for continued development of the Company's assets in northwest Peru. The majority of the capital budget is expected to be spent on offshore Block Z-1, primarily for the design and construction of an additional production platform for the Corvina oil field; as well as, for injection equipment to be installed on the platform in the Albacora oil field by year-end 2011. The new platform in Corvina, along with the injection equipment for Albacora, is budgeted at approximately $40 million this year. The new platform for Corvina will be installed with the production and injection equipment in 2012. The Company has also budgeted approximately $10 million for two automatic crude oil custody transfer units, improvements to the supply dock at Caleta Cruz and other capital projects.

In addition to capital expenditures, the Company plans to spend and expense approximately $18 million on seismic acquisition in Block Z-1 and $4 million to complete the seismic acquisitions in Blocks XXII and XXIII. At the CX-11 platform in Corvina, the Company plans two or three work-overs of existing wells to optimize oil production. Work-overs are expected to commence in the second quarter, and are budgeted at $3 million each. The Company may work over two or three of the existing oil wells at the Albacora platform in the fourth quarter of 2011 and are also budgeted at $3 million each. Work-overs are recorded as operating expense.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs