Independent oil and gas exploration and production company BPZ Energy has announced initial production at the Albacora A-27D development well, offshore Block Z-1, Peru.

The A-27D well, which was drilled to a total measured depth of approximately 14,500ft, averaged approximately 1,135 barrels of oil per day (bopd) gross for the previous ten days.

In the final 24 hours, the well had an average production of approximately 905bopd, 3.7 million cubic feet of gas per day and two barrels of water per day.

"Given the positive results on the A-27D, we approved drilling of the A-22D well, also targeting the Mid and Lower Zorritos formation."

BPZ Energy, which has a 51% participation in Block Z-1, said the well is producing better than previous wells due to additional pay opened in the lower Zorritos sands.

Due to the positive results of the A-27D, the new Albacora A-22D development well was spud on 10 January.

The targeted measured depth of the A-22D well is 14,445ft.

BPZ Energy president and CEO Manolo Zuniga said: "Given the positive results on the A-27D, we approved drilling of the A-22D well, also targeting the Mid and Lower Zorritos formation, particularly the new deeper oil tested in the last three wells.

"We have also decided to perforate deeper sands in the Albacora A-21D and A-26D in the first quarter of 2015. These interventions should enable us to increase production with minimal capital, and we continue to look for other similar opportunities.

"While this work has been approved, the full 2015 capital plan is still under review as we work with our Block Z-1 partner to reduce costs and with our advisors on financing alternatives."

The company will also test the mid and Lower Zorritos sands, with the results expected in April.

The Corvina CX15-8D development well is being completed with results expected in February. The 8D well location will enable extension of the Corvina field to the south-west.

Block Z-1 production from the Corvina and Albacora fields for the full-year-2014 averaged 5,055bopd gross, or 2,578bopd net to BPZ; an increase of 83% compared with the full-year-2013 production of 2,761bopd gross, or 1,408bopd net.

For the fourth quarter of fiscal 2014, production averaged approximately 5,276bopd gross (2,691bopd net); a 10% increase from the production reported in the third quarter of 2014 and a surge of 94% compared with production in the fourth quarter of 2013.

Production so far this month has averaged around 5,443bopd gross (2,776bopd net).