Businessweek

BPZ Resources, Inc. focuses on the exploration, development and production of oil and natural gas in Peru and Ecuador. The company, through BPZ Exploración & Producción S.R.L (BPZ E&P), has rights and license contracts for oil and gas exploration and production covering a total of approximately 2.2 million acres, in 4 blocks, in northwest Peru. The company’s license contracts cover 100% ownership of various properties, including Block Z-1 (0.6 million acres), Block XIX (0.5 million acres), Block XXII (0.9 million acres) and Block XXIII (0.2 million acres). The company, through its wholly-owned subsidiary, SMC Ecuador Inc., owns a 10% non-operating net profits interest in an oil and gas producing property, Block 2, located in the southwest region of Ecuador (the Santa Elena Property). The company is in the early stages of appraising, exploring, and developing the potential oil and natural gas resources throughout its various properties in Peru. It is in the process of fabricating a new platform for the Corvina field to continue field development. The company installed all of the equipment necessary for the reinjection of gas and water at the Albacora platform, completed tie-ins and tested the equipment, and are working on the final environment permit to allow it to commission the equipment to start official commercial production in Albacora. The company obtained a permit that allows it to flare gas from A-14XD, A-13E and A-9G wells until the permit is obtained. Reserves As of December 31, 2011, the company had estimated net proved oil reserves of 34.7 MMBbls, of which 27.8 MMBbls were in the Corvina field and 6.9 MMBbls were from the Albacora field. Both fields are located in Block Z-1offshore of northwest Peru. Customers The company’s sales of oil in Peru have been made under contracts with the Peruvian national oil company, Petroleos del Peru - PETROPERU S.A. (Petroperu). History BPZ Resources, Inc. was founded in 2001.