Offshore Block Z-1 (51% working interest)
The CX15-2D development well at the Corvina field was completed at the end of January 2014. This new well has produced an average of approximately 775 barrels of oil per day (bopd) gross, or net production to BPZ of approximately 395 bopd over the past seven days with negligible water cut and naturally flowing. Three intervals totaling approximately 80 feet were perforated. For the last 24 hours the CX15-2D well has averaged gross production of approximately 700 bopd, or net production to BPZ of 360 bopd.
Current Block Z-1 gross production is approximately 5,425 bopd, or net production to BPZ of 2,765 bopd, equally divided between the Corvina and Albacora fields.
The new Corvina CX15-3D development well was spud on February 9, 2014 with a targeted total measured depth of 7,750 thousand feet and completion of the well expected in April 2014.
At the Albacora field, the A-19D development well has reached targeted total measured depth of 12,450 feet and logs are currently being run with completion expected in March 2014.
Onshore (100% working interest)
At Block XXIII onshore, the Caracol 1X exploration well has reached total depth of 3,450 feet, logs have been run to determine testing intervals, and casing has now been set to test the selected intervals. Access roads and well sites for the two other exploration drilling locations at Block XXIII are now completed.
2014 CAPITAL PLAN
Offshore (51% working interest)
The Company's 51% share of Block Z-1 capital investments is budgeted at $71 million, which is expected to be fully covered by remaining carry of $81 million under the Carry Agreement with Pacific Rubiales as of December 31, 2013. The 2014 capital plan includes development drilling of six wells at Corvina starting with the CX15-3D, and two wells at Albacora including the A-19D, along with associated projects and engineering. Drilling of additional wells at Albacora in 2014 is subject to ongoing review of the drilling campaign results.
The necessary permits have now been received for the Delfin, Piedra Redonda and Raya prospects which have been remapped with 3D seismic. The process is underway to develop the associated exploration plans and budgets, with expectations that Delfin, which is adjacent to Corvina, could potentially be drilled later this year.
The Block Z-1 capital plan is subject to review and approval by the partners under the Block Z-1 Joint Operating Agreement.
Onshore (100% working interest)
The Company plans to spend approximately $15 million in 2014 on capital and exploratory expenditures, excluding capitalized interest, for onshore Blocks XIX, XXII and XXIII. This includes a three-well shallow drilling campaign at Block XXIII, already underway, as well as permitting for seismic and drilling for the three blocks.
Exploration drilling at Block XXII is contingent upon receipt of the necessary permits which are expected to be obtained during the second half of 2014, allowing for drilling to start by late 2014 or early 2015.
The table below summarizes the 2014 offshore and onshore capital plans:
| 2014 Capital & Exploratory Budget |
| | |
| Offshore Block Z-1 (51% BPZ) | |
| Corvina CX-15 (6 wells) | $40 |
| Albacora (2 wells) | $16 |
| Projects, engineering & other | $15 |
| Total BPZ Net Offshore | $71 |
| | |
| Onshore Blocks XXIII, XXII and XIX (100% BPZ) | |
| Block XXIII (3 wells) | $8 |
| Permitting, engineering & other | $7 |
| Total Onshore | $15 |
|
