Harry Chernoff

http://www.pathfindercap.com
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    • Thu Jun 12th 11:50 AM | Rating: 0 0
      Commented on:
      Outstanding Capital Efficiency at BPZ Resources
      A key reason BPZ sought to acquire the Z-1 block (which includes Corvina and Albacora) is that their review of the earlier drilling methods, logs, mud types, completion techniques, test results, etc. convinced them that the resources were much greater than the previous operators found and that the previous operators did not do the job properly. BPZ’s drill stem tests at Corvina (with wells properly drilled and completed) show results far in excess of those from the previous operators. Actual flow rates at the wells, not models of flow rates, are also far in excess of what previous operators reported. This same recompletion logic is behind BPZ’s acquisition and plan of operations on upcoming plays in other blocks, notably the Mancora gas play in Block XXIII. There is no basis for impugning BPZ’s outstanding results at Corvina in 2007 and 2008, including the reserve report, by claiming that earlier results using inferior methods somehow definitively establish the limits of the field once and for all. If this were true, the list of major oil & gas fields in the world would be a tiny fraction of what it is today.


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